Good news for bank customers nationwide – the RM1 fee currently charged for interbank ATM withdrawals will be abolished from July 1, making it free to access cash from participating bank machines across Malaysia.
Beginning July 1, Malaysians – and presumably even non-Malaysians banking in the country – will no longer have to pay the RM1 fee currently charged for interbank cash withdrawals at automated teller machines (ATMs) and smart recycler machines (SRMs) nationwide.
The change was announced jointly by the Association of Banks in Malaysia (ABM), the Association of Islamic Banking and Financial Institutions Malaysia (AIBIM), and the Association of Development Finance Institutions of Malaysia (ADFIM), in collaboration with Payments Network Malaysia (PayNet).
Under the new arrangement, debit cardholders will be able to make unlimited cash withdrawals at participating ATMs and SRMs regardless of which bank issued their card, without incurring any additional charges.
The banking associations said the initiative is intended to improve access to banking services while reducing the cost of obtaining cash, which remains an important payment method for many Malaysians despite the growing popularity of digital transactions.
The move is also part of a broader effort by Malaysia’s banking sector to make financial services more accessible, affordable, and inclusive.
“In line with this, the removal of interbank ATM cash withdrawal fee reflects the industry’s commitment in ensuring reliable, convenient and affordable access, while helping to ease the everyday financial burden of the rakyat,” the associations said in a joint statement.
A SMALL FEE, BUT A WELCOME SAVING
While RM1 may seem insignificant on its own, the charge could add up for consumers who frequently withdraw cash from ATMs operated by banks other than their own. The elimination of the fee effectively gives customers greater flexibility to use whichever ATM is most convenient without worrying about incurring extra costs.
The decision is also notable when viewed in an international context. In many countries, particularly the United States, ATM users routinely face considerably higher fees when using machines outside their own banking network. It is not uncommon for the ATM operator to charge a fee while the customer’s own bank imposes a separate surcharge, easily resulting in total charges of US$3 to US$5 (approximately RM13 to RM21) or more for a single withdrawal.
By comparison, Malaysia’s RM1 interbank fee has long been relatively modest, making the complete removal of the charge an even more consumer-friendly step.
Although Malaysia continues to move steadily toward cashless payments through e-wallets, contactless cards, and online banking platforms, cash remains an important part of daily life for many people, particularly in smaller towns, traditional markets, and among older consumers.
The upcoming fee waiver should therefore be welcomed by a broad cross-section of banking customers in Malaysia, providing greater convenience while removing one small but familiar banking expense from everyday life.
