KUALA LUMPUR: A consumer association has questioned the RM1 charge imposed on each automated teller machine (ATM) transaction, describing it as profiteering, with operating companies reportedly earning millions in profits.

In a Utusan Malaysia report, Kedah Consumers Association (Cake) president Mohd Yusrizal Yusoff said the fee provides no clear benefits to the 15 million users and leaves them feeling exploited.

"Previously, we used ATMs and interbank systems without any charges, yet banks recorded no losses. Now, these companies are imposing irrational fees that burden the public, especially those in the low-income group.

"We withdraw our own money, but they earn millions in profit. While RM1 may seem insignificant, it is valuable to the people, particularly with the rising cost of living," he said.

He added that if the government and banks aim to encourage digital adoption among the public, they should make it easier for them, and not the opposite.

Payments Network Malaysia Sdn. Bhd. (PayNet) reportedly earned RM544 million in revenue and RM271 million in profits from the RM1 cash withdrawal fee at ATMs.

Meanwhile, National Union of Bank Employees secretary J. Solomon said the RM1 fee has generated millions in profits for banks while burdening the B40 group.

He explained that only bank account holders from the B40 group primarily use ATMs, while wealthier individuals prefered Internet banking.

"Millions of people in Malaysia have bank accounts, and it is estimated that 80 per cent of them belong to the B40 and M40 groups. This means millions of people are affected by the RM1 fee.

"This fee only makes the rich richer, while the poor continue to struggle. In today's high cost of living, even RM1 places a burden on them," he said.

He added that the government should instruct Bank Negara Malaysia (BNM) and other banks to stop this service charge.

https://www.nst.com.my/news/nation/2024/12/1145702/consumer-group-says-rm1-atm-fee-burdens-public