RM1 interbank withdrawal fee should be scrapped, says NUBE

THE National Union of Bank Employees (NUBE) has urged Payments Network Malaysia Sdn Bhd (PayNet) and its shareholders, which include Bank Negara Malaysia (BNM) and 11 commercial banks, to reconsider the re-imposition of the RM1.00 interbank cash withdrawal fee.  

This fee is charged to customers who withdraw cash from automated teller machines (ATMs) not affiliated with their respective banks, a practice that has been particularly burdensome for lower-income families still recovering from the economic fallout of the Covid-19 pandemic. 

During the pandemic, PayNet announced a waiver of this RM1.00 fee on April 3, 2020, recognising the financial strain faced by many Malaysians. 

However, in February 2022, this fee was reinstated, placing additional financial pressure on those who rely on ATMs for their cash withdrawal needs.

“NUBE believes that the majority of customers impacted by this fee are from lower-income groups who already struggle to make ends meet. 

Imposing this fee on individuals who frequently use ATMs outside of their banking network is not only unfair but also exacerbates the financial challenges they face,” said NUBE general secretary, J Solomon.

He said many of these customers need to make withdrawals while on the go, and the added cost of RM1.00 per transaction can accumulate quickly, further straining their limited resources.

In early October this year, he said NUBE wrote to the shareholders of PayNet, namely BNM and the commercial banks asking them to advise PayNet to remove or exempt NUBE members from this payment. 

“It is NUBE's position that it is the corporate social responsibility of PayNet and its shareholders to waive this RM1.00 fee for all its customers who are in the lower-earning income group. 

“While there were responses to these letters, from BNM and the commercial banks, none of the responses gave a firm commitment that the RM1.00 fee would be waived. 

“We urge PayNet and the banks to prioritise empathy and social responsibility in their operations," said N Solomon. 

He stressed that the RM1.00 withdrawal fee disproportionately affects those who can least afford it. 

“As we strive for economic recovery, we should not impose additional burdens on our most vulnerable communities.” 

NUBE called on PayNet and commercial banks to consider reinstating the fee waiver or exploring alternative solutions that would ease the financial burden on lower-income families.

“It's imperative to foster an inclusive banking environment that supports all Malaysians, particularly those who are struggling,” added Solomon. - December 2, 2024