No reason for RM1 interbank ATM withdrawal fee, says Sarawak PH chief

STAMPIN MP Chong Chieng Jen said there was no reason for any bank in the country to charge the RM1 interbank ATM withdrawal fee.

“Banks have already gained substantial savings through automation and digitalisation and have generated greater cost savings for each bank.

“As these banks have reduced their costs — for example, by reducing staff at counters and as less space is needed now for a bank to function — these cost savings can be used to absorb the ATM charges,” said Chong.

Last December, the National Union of Bank Employees (NUBE) launched a campaign to abolish the RM1 interbank ATM withdrawal fee.

Its general secretary J. Solomon said the fee was an unnecessary, additional burden to the people, especially those in the lower income groups.

“It is absurd that consumers have to bear the additional RM1 ATM fee over and above each bank’s gains.

“No Malaysian consumer should be allowed to pay for large-scale profitability gained by these banks as it then becomes a burden to the consumer.

“This adds a financial strain on low-income earners, particularly those from the B40 and M40 groups who reportedly make up 85% of Malaysia’s population,” said Chong, who is also the Sarawak PH and DAP chief.

He said banks gain substantial cost savings due to service automation and with the use of many banking technological advancements, consumers cannot be burdened with further charges after the fact that these banks earn huge profits.

“This makes the fee baseless.

“Any additional costs incurred to operate the ATM network must be borne by these banks as the cost savings can continue to be used for maintenance and other costs incurred,” he added. - January 23, 2025