Typically, when a person performs an interbank cash withdrawal, they are charged an additional RM1 fee. However, that will soon be a thing of the past as banks across Malaysia will waive this fee starting 1 July 2026. This change will apply to both Automated Teller Machines (ATMs) and Smart Recycler Machines (SRMs).
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)announced the initiative in a joint statement in collaboration with PayNet. According to the associations, Malaysian debit cardholders will be able to make unlimited free cash withdrawals at more than 14,000 ATMs and SRMs across the country regardless of their issuing bank.
The banking industry noted that cash continues to play an important role in the daily lives of many Malaysians. As such, the removal of the fee will help ease the everyday financial burden of consumers while making access to cash more convenient and affordable.
Despite the fee waiver, the banking industry said it continues to support the adoption of digital and cashless payments while acknowledging that cash remains an important payment option for many Malaysians. As the country moves towards a more digital economy, banks said they “will continue to strengthen and promote secure, seamless, and convenient cashless payment solutions as a viable alternative for everyday transactions”.
(Source: AIBIM press release)
