THE Malaysian Trades Union Congress (MTUC) has echoed the National Union of Bank Employees’ (NUBE) call for the abolishment of the RM1 interbank ATM cash withdrawal fee, saying the charge has disproportionately affected lower-income individuals who are already facing significant financial constraints.
MTUC, which represents approximately 950,000 workers through its affiliates across the nation, has expressed grave concern over the growing wealth and income divide and the increased burden on the country’s lower income group.
“While the government has increased the minimum wage, the rakyat and in particular the low-income group are being burdened by such extortionate practices,” said its secretary-general Kamarul Baharin Mansor.
For context, the RM1 interbank ATM cash withdrawal fee serves to boost profits for large commercial institutions, particularly Payments Network Malaysia Sdn Bhd (PayNet), which owns the Malaysian Electronic Payments System (MEPS).
“With the technological advances, the RM1 charge for inter-bank withdrawals should be abolished, especially given the high cost of living in the country,” Kamarul continued.
He said for low-income earners making five withdrawals a month, the yearly cost amounts to RM60, which, while seemingly trivial to wealthier individuals, represents a significant financial strain for poorer households.
“MTUC urges banks and relevant stakeholders to reconsider this fee and eliminate it to ease the financial burden on the rakyat. We strongly advocate for the total abolishment of this extra charges,” he added.
On Monday (Dec 2), NUBE, calling the fee burdensome for lower-income families, said imposing this fee on individuals who frequently use ATMs outside of their banking network is not only unfair but also exacerbates the financial challenges that they face.
Recall that on April 3, 2020, PayNet had announced a waiver of this RM1 fee upon recognition of the financial strain faced by many Malaysians in the face of the COVID-19 pandemic.
This fee was later reinstated in February 2022. – Dec 5, 2024
