Banks Should Scrap Rm1 Atm Fee To Help The Poor

---

 


 As banks declared their FY2024 results, it is good to see that their profits run into the billions - a sign that the national economy is flourishing.
With these huge profits, it is timely that banks give something back to the rakyat - who are the ones responsible for their huge profits.
With technological advances, a majority of Malaysians are now going cashless, and most transactions are carried out online.
There are fewer cash transactions these days and some outlets do not even accept cash anymore.
It will be a matter of time before ATMs are phased out and probably replaced with something much more high-tech.
The ones who still rely most on these ATMs are from the middle to lower income earners. Not the “maha kaya” definitely. You are never going to see a wealthy Malaysian queuing up at an ATM.
Many of the B40 are yet to turn to cashless transactions and rely heavily on ATMs for their daily needs. The elderly are also big time ATM users by habit and comfort.
In fact, in some villages, there is only one ATM and the entire population there relies on it.
Counting ringgit and sen
It is time for banks to take into consideration the plight of these poor souls who are still dependent and rely on ATM transactions.
Each time they use an ATM for an interbank withdrawal, they are charged RM1 - though this does not seem much, it does add up to a hefty sum over a period, considering many of these retirees and poor folks could be calculating their ringgit and sen on each withdrawal.
For an income-earner from the B40 group, RM1 per transaction can add up to RM120 a year even if one performs 10 withdrawals a month.
Most of the lower income group earners do not withdraw a thousand or even hundreds, but prefer to withdraw only RM100 or RM50 per transaction - which means they make frequent trips to the ATM.
There have been arguments that the banks charge RM1 per interbank transaction and the money goes to the maintenance of the ATMs and the network.
This is hard to comprehend considering the billions in profits the banks are reaping in.
Studying the matter
I am also taken aback by the response from our Deputy Finance Minister Lim Hui Ying who recently said that a study needs to be done before banks can abolish the RM1 fee. This decision doesn’t need rocket science. It is CSR at its best.
As we recall, during the Movement Control Order (MCO) period when our nation was hit by the Covid-19 virus, the banks abolished the RM1 fee.
This action is commendable and if they could do it so promptly back then, there should not be an issue now.
There was no study done back then when the fee was abolished.
Also, my question to the deputy minister is, was there any study done when the fee was imposed in the first place?
It is time for the banks and those responsible to consider the plight of the less fortunate and do their part, though small, to ease their burdens.
Banks are after all making profits from every other transaction - from interest rates, late charges, credit card annual fees, and a host of others.
I urge the Madani government to be more emphatic to these poor souls. Please step in and abolish this RM1 fee once and for all. After all, the Madani government has done away with subsidies, added tax, tariffs, etc.
Time to give a ringgit to the poor and not rob them? - Mkini
TI LIAN KER is a former MCA vice-president, former senator, and former deputy minister.
The views expressed here are those of the author/contributor and do not necessarily represent the views of MMKtT.

---