Goodbye RM1 fee: Malaysians cheer upcoming waiver on interbank ATM withdrawals

KUALA LUMPUR -The decision to waive the RM1 fee for interbank cash withdrawals at Automated Teller Machines (ATMs) and Smart Recycler Machines (SRMs) from July 1 has been widely welcomed by consumers and industry stakeholders, saying the move will benefit millions of bank users and support greater financial inclusion.

Health Ministry administrative officer Nurul Aisyah Mohd Noor, 34, said that although the charge may appear minimal, the savings would accumulate for consumers who frequently use ATMs outside their bank's network.

"Not everyone has easy access to their own bank's ATM, especially when travelling or during emergencies. Removing the fee gives consumers greater flexibility and convenience," she told Bernama.

Nurul Aisyah said the move reflects a better understanding of consumers' needs, particularly as households continue to cope with rising living costs. She also hoped banks would continue reviewing other service charges to ensure basic banking services remain affordable and accessible to all Malaysians.

Sales executive Lim Wei Jian, 38, also welcomed the move, saying it would benefit consumers who often rely on ATMs operated by other banks near their workplace.

"My salary account is with one bank, but the nearest ATM to my office belongs to another bank. Previously, I would think twice before making a withdrawal because of the extra charge. With the fee removed, it will be more convenient and cost-effective," he said.

Technician R. Karthikeyan, 42, said the waiver would particularly benefit residents in suburban areas where ATM options are limited.

"The ATM closest to my home is not from my bank, so I usually end up paying the RM1 charge whenever I need cash urgently. It may seem like a small amount, but over time, the charges add up. This is a positive move for ordinary consumers," he said.

The Federation of Malaysian Consumers Associations (FOMCA) also welcomed the decision, describing it as a significant win for consumers.

FOMCA chief executive officer Dr Saravanan Thambirajah said the move removes an unnecessary cost imposed on consumers when accessing their own money.

He said the waiver would particularly benefit consumers in rural and semi-rural areas, senior citizens and those with limited access to their own bank's ATM network.

"Consumers will now have greater flexibility to withdraw cash from any participating ATM without worrying about additional charges," he said.

Saravanan said FOMCA had consistently advocated the removal of the fee and hoped the waiver would become a permanent policy.

"Access to basic banking services should be affordable, convenient and inclusive for all consumers," he said, adding that the decision demonstrated that consumer interests could be prioritised while supporting greater financial inclusion and enhancing the overall banking experience.

Meanwhile, Sunway University Professor of Economics Dr Yeah Kim Leng described the abolition of the RM1 fee as a positive move that would benefit consumers while helping to ease living costs.

He said the removal of the fee sends a positive signal to the public and encourages greater use of ATM banking services.

"It will also help reduce reliance on counter services, leading to improved banking efficiency and greater convenience for customers," he told Bernama.

Yeah said the measure demonstrates how small cost savings can collectively benefit millions of banking customers nationwide. - BERNAMA