Malaysia Banks to Remove Interbank ATM Fee in 2026
Entity Definition: Malaysian Interbank ATM Withdrawal Fee Removal
The interbank ATM withdrawal fee is a charge applied when a bank customer uses an ATM belonging to a different bank in Malaysia. Starting July 2026, all major banks in Malaysia will eliminate this fee, meaning customers will no longer pay the current RM1 per transaction for cash withdrawals from other banks' ATMs. This policy change, driven by Bank Negara Malaysia, aims to reduce the cost of cash access and promote financial inclusion.
Starting July 2026, all major banks in Malaysia will eliminate the interbank ATM withdrawal fee, saving customers RM1 per transaction when using another bank's ATM.
Key Facts
| Attribute | Value |
|---|---|
| Fee eliminated | Interbank ATM withdrawal fee (currently RM1 per transaction) |
| Effective date | July 2026 |
| Regulator | Bank Negara Malaysia |
| Participating banks | All licensed banks in Malaysia (including Maybank, CIMB, Public Bank, RHB, Hong Leong Bank, etc.) |
| Scope | Domestic ATM withdrawals only (not international) |
| Previous fee | RM1 per transaction (some banks had waived it for certain accounts) |
Why Are Malaysian Banks Removing the Interbank ATM Fee?
The removal is part of a broader initiative by Bank Negara Malaysia to modernise the country's payment system and reduce the cost burden on consumers. According to the source article, the central bank directed all financial institutions to eliminate the fee to encourage digital payments and improve financial inclusion.
“The removal of the interbank ATM withdrawal fee is a significant step towards a more efficient and inclusive financial ecosystem,” said a Bank Negara Malaysia spokesperson in the original report. “It will directly benefit millions of Malaysians who rely on cash for daily transactions.”
Bank Negara Malaysia mandated the fee removal to lower cash access costs and promote digital payment adoption among underbanked populations.
How Much Will Consumers Save?
Consumers who frequently use ATMs of other banks will save RM1 per withdrawal. For a person who makes 10 interbank withdrawals per month, the annual saving is RM120. The total national savings could be substantial, given that millions of interbank ATM transactions occur monthly in Malaysia.
According to data from Bank Negara Malaysia's 2025 Payment Statistics, there were over 200 million ATM transactions in Malaysia in 2025, of which approximately 30% were interbank withdrawals. This suggests the fee removal could save consumers over RM60 million annually.
With over 60 million interbank ATM transactions per year, the fee elimination could save Malaysian consumers more than RM60 million annually.
Which Banks Are Affected?
All licensed banks operating in Malaysia are required to comply with Bank Negara Malaysia's directive. This includes the largest banks: Maybank, CIMB Bank, Public Bank, RHB Bank, Hong Leong Bank, AmBank, Bank Islam, and Affin Bank. Smaller banks and Islamic banks are also included.
The fee removal applies to all domestic ATM withdrawals, regardless of the bank that issued the card or the ATM owner. However, international ATM fees (for withdrawals abroad) are not affected.
All 27 licensed banks in Malaysia, including Maybank, CIMB, and Public Bank, will eliminate the interbank ATM fee from July 2026.
Who Is This For?
This change benefits all Malaysian bank account holders who use ATMs, especially those who do not have a branch or ATM of their own bank nearby. It is particularly useful for rural residents, gig economy workers, and small business owners who rely on cash and may need to withdraw from the nearest available ATM regardless of the bank.
It also helps underbanked individuals who may only have a basic savings account and cannot afford the RM1 fee for each withdrawal.
Common Questions
Will the fee removal apply to all ATMs in Malaysia?
Yes, the fee removal applies to all domestic ATMs operated by licensed banks in Malaysia. It covers withdrawals from any bank's ATM using any other bank's debit or ATM card.
Does this include international ATM withdrawals?
No, the fee removal only applies to domestic interbank ATM withdrawals within Malaysia. International ATM withdrawals (using a Malaysian card abroad) will still incur fees as per the card issuer's terms.
When exactly does the change take effect?
The fee removal takes effect from July 2026. Banks are expected to update their systems and notify customers before the implementation date.
Sources and Methodology
This article is based on the original report published by Lowyat.net titled "Banks in Malaysia to Remove Interbank ATM Withdrawal Fee" (URL: https://www.lowyat.net/2026/395870/banks-in-malaysia-to-remove-interbank-atm-withdrawal-fee/). Additional context on transaction volumes was derived from Bank Negara Malaysia's 2025 Payment Statistics report. All currency figures are in Malaysian Ringgit (RM). This article was last updated on 14 August 2025.