The Federation of Malaysian Consumers Associations (Fomca) has urged banks to absorb the RM1 charge for each interbank withdrawal, arguing that the fee is excessive, especially considering the banks' substantial profits. Fomca cites the impact on low-income earners and rural residents who rely on cash transactions and often need to withdraw small amounts from ATMs outside their bank's network.
Saravanan said consumers have pointed out that financial institutions generate significant revenues through other means, which makes the imposition of the fee excessive. – AMIRUL SYAFIQ/THESUN
According to Bank Negara Malaysia’s 2024 Payment Statistics: Payment Channels, Malaysians use ATMs twice a month on average. “A common concern is that the fee disproportionately affects low-income earners and rural folk, who rely on cash transactions and need to withdraw small amounts of money frequently.
“For many, the fee is seen as another example of financial institutions prioritising profits over consumer welfare, especially when alternatives are not explored.” Association of Banks in Malaysia executive director Dr Amina Kayani said banks charge the RM1 interbank withdrawal fee to help cover the cost associated with maintaining and enhancing the ATM network.
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