The banking industry’s interbank ATM withdrawal fee waiver officially came into effect on 1 July 2026, allowing customers to withdraw cash from another bank’s ATM without paying the previous RM1 charge. The implementation follows last month’s announcement by Communications Minister Datuk Fahmi Fadzil, who said the Cabinet had agreed to abolish the fee after discussions with Bank Negara Malaysia (BNM) as part of the government’s broader efforts to ease the cost of living.
In a joint statement, The Association of Banks in Malaysia (ABM), Association of Islamic Banking and Financial Institutions Malaysia (AIBIM), and Association of Development Finance Institutions of Malaysia (ADFIM) said the rollout proceeded smoothly on its first day. The banking industry added that the initiative covers more than 14,000 bank-operated ATMs and Smart Recycler Machines (SRMs) across the country.
ATM Withdrawal Fee Applies To Bank-Operated ATMs Only
The waiver applies to interbank cash withdrawals made at ATMs operated by banks nationwide. In other words, customers can now withdraw cash from another bank’s ATM without incurring the RM1 fee that was previously charged.
The associations also clarified that standard charges may still apply when customers use non-bank-operated ATMs. They noted that bank-operated machines can generally be identified by displaying the name and logo of a single bank on both the ATM’s exterior and screen, whereas non-bank ATMs typically display the logos of multiple banks.
One example is Seven Bank ATMs located at selected 7-Eleven outlets, which are operated independently rather than by a Malaysian bank. As such, these machines are not covered by the industry-wide waiver for bank-operated ATMs and may continue to impose standard withdrawal charges.
Customers Asked To Report Incorrect Charges
According to the three banking associations, the initiative reflects a wider effort to build a more inclusive and accessible financial system while improving the convenience of everyday banking services. They added that the industry worked closely with Payments Network Malaysia Sdn Bhd (PayNet) to ensure the fee waiver could be implemented smoothly and that Malaysians could benefit from it immediately.
Meanwhile, Fahmi has recently urged customers to lodge complaints with Bank Negara Malaysia if they are still charged the RM1 fee when withdrawing cash from eligible bank-operated ATMs. He said the central bank can take follow-up action against any bank that fails to comply with the fee waiver, while customers seeking clarification can also refer to their respective banks’ official websites, mobile banking applications or customer service channels.
(Source: ABM, AIBIM, ADFIM joint press release)
