KUALA LUMPUR: The removal of the RM1 interbank ATM withdrawal fee is a justified move, especially considering banks’ profits, says Sunway University Economics Professor Dr Yeah Kim Leng.
He stressed that the decision would benefit the lower-income group, who mostly use automated teller machines (ATMs) for cash withdrawals.
“Removing the charge would ease the burden faced by the lower-income group, especially during these hard times.
“If a private company is involved in the RM1 transactions, it would be akin to a monopolistic venture which creates excessive profits,” he said.
Prof Yeah stressed that the government must review such charges and ensure financial transactions remain accessible and affordable and that the government must look at making changes to the charges to help the people.
Furthermore, he highlighted that making ATM transactions more affordable is a crucial aspect of financial inclusion, allowing a broader segment of society to feel included and secure in their economic environment.
He further urged the government to investigate the ATM withdrawal system to determine whether it is a monopoly and find ways to regulate it.
His statement follows an official signature campaign by the National Union of Bank Employees (NUBE), which seeks to gather one million signatures to push the Finance Ministry to abolish the RM1 interbank ATM withdrawal fee.
NUBE general secretary J. Solomon stressed that while RM1 may seem insignificant to many, it accumulates over time, imposing a substantial financial burden on lower-income earners.
“RM1 may not appear big to many, but it adds up to a huge amount over time, which is a burden to the lower-income group,” he said.
He also pointed out that most of those affected by the fee are individuals from lower-income backgrounds who frequently withdraw cash for daily expenses.
