RM1 ATM withdrawal fee burdensome for lower-income groups, should be abolished
THE National Union of Bank Employees (NUBE) has called for Payments Network Malaysia Sdn Bhd (PayNet) and its shareholders, which include Bank Negara Malaysia (BNM) and 11 banks, to abolish the re-imposition of the RM1 interbank ATM cash withdrawal fee.
Calling the fee burdensome for lower-income families, the union 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.
For context, on April 3, 2020, recognising the financial strain faced by many Malaysians during the COVID-19 pandemic, PayNet announced a waiver of this RM1 fee.
However, in February 2022, this fee was reinstated, which NUBE said placed additional financial pressure on those who rely on ATMs for their cash withdrawal needs.
“NUBE believes that the majority of customers impacted by this fee are from lower-income groups including a large population of NUBE members who are already struggling to make ends meet,” said NUBE General Secretary J. Solomon.
“Many of these customers need to make withdrawals while on the go, and the added cost of RM1 per transaction can accumulate quickly, further straining their limited resources.”
According to Solomon, the union had written to the shareholders of PayNet, namely BNM and the commercial banks asking them to advise PayNet to remove or exempt this payment in early October this year.
“NUBE’s position is that it is PayNet and its shareholder’s moral obligation, corporate social responsibility and sustainable Environmental, Social, and Governance (ES)G in the interest of the rakyat to waive this RM1 fee for all its customers who are in the lower-earning income group,” he said.
While there were responses to these letters particularly from BNM and several other banks, none of them gave a firm commitment that the RM1.00 fee would be waived.
“We urge PayNet and the banks to prioritise empathy and social responsibility in their operations,” Solomon remarked.
“The RM1 withdrawal fee disproportionately affects those who can least afford it. As we strive for economic recovery, we should not impose additional burdens on our most vulnerable communities.” – FocusM Dec 2, 2024
