Banks to scrap RM1 ATM withdrawal fee nationwide from July 1

STARTING July 1, Malaysians will no longer have to pay the RM1 fee for interbank cash withdrawals at ATMs and Smart Recycler Machines (SRMs).

In a joint statement, the Association of Banks in Malaysia (ABM), Association of Islamic Banking and Financial Institutions Malaysia (AIBIM), and Association of Development Finance Institutions of Malaysia (ADFIM) said the move, carried out with Payments Network Malaysia Sdn Bhd (PayNet), will allow debit cardholders to make unlimited free withdrawals at more than 14,000 machines nationwide.

“This initiative is part of our ongoing efforts to ensure banking services remain accessible and relevant as economic conditions evolve,” the statement read.

They added that the decision also reflects a broader commitment to making financial services more inclusive and affordable, especially as cash continues to play an important role for many Malaysians.

“We recognise that while digital payments are growing, cash remains essential for a significant segment of the population,” it said.

At the same time, banks will continue pushing for wider adoption of secure and convenient cashless payment options as Malaysia moves further into a digital economy.

“Customers should have the freedom to choose the payment method that best suits their needs,” the statement added.

The associations stressed that the goal is to strike a balance between driving digitalisation and ensuring no one is left behind. – June 15, 2026