Former Penang DCM supports call to abolish RM1 ATM withdrawal fee

A FORMER Penang Deputy Chief Minister today lent his support to the call by NUBE to abolish the RM1 interbank ATM withdrawal fee.

Prof Dr P. Ramasamy, who is now chairman of the United Rights of the Malaysian Party (Urimai), stressed that the welfare of the people, especially that of low-income earners, must remain a top priority for the government.

“The Automated Teller Machine (ATM) fee of RM1 charged for interbank withdrawal transactions may be a minuscule sum mostly overlooked by the rich.

“However, this extra burden has affected the livelihoods of the B40 and M40 groups at a time when some low-income earners are left with RM5 to RM10 in their bank accounts which is seen as a norm today,” he said in a statement.

He said many poor Malaysians are being neglected and continue to suffer without decent jobs as prices of goods and services rise.

“There is no rhyme or reason for Payments Network Malaysia Sdn Bhd (PayNet) to charge the discriminatory fee especially when banks continue to earn huge profits in 2024 — some in the billions of ringgit.”

Ramasamy said he believes the government and Bank Negara Malaysia — as the nation’s central bank — must instruct PayNet and each bank to allocate sufficient sums of money to take on all costs of maintenance and other aspects of managing the ATM network in total.

“They must not “pass the buck, merely to reap profits” to the consumer, who, at the end of the day, allows these banks to gain high profitability through their deposits,” he said.

The RM1 fee for cash withdrawals at interbank ATMs is charged by Payments Network Malaysia Sdn Bhd (PayNet) for each transaction.

In December 2024, the National Union of Bank Employees (NUBE) launched its #HapusCajRM1 campaign soon after calling on the government and BNM to abolish the ATM RM1 fee imposed for interbank cash withdrawals.

NUBE general secretary J Solomon said the fee burdens the people, particularly the B40 and M40 groups due to the rising cost of living which has caused many to face greater hardships.  - January 27, 2025