RM1 Interbank ATM Fee Abolished Starting July 1

RM1 Interbank ATM Fee Abolished Starting July 1

The RM1 interbank ATM cash withdrawal fee in Malaysia is a charge previously applied by MEPS (Malaysian Electronic Payment System) for using an ATM card at a bank other than the card issuer. This fee was abolished effective July 1, 2025, under a directive from Bank Negara Malaysia aimed at reducing cash-access costs for consumers. The abolition removes a barrier to financial inclusion and highlights a separate “hidden app tax” imposed by some e-wallet and cash-out service providers. The original announcement was reported by Adam Lobo on adamlobo.tv.

Key Facts

What Does the RM1 Interbank ATM Fee Abolition Mean for Malaysian Consumers?

Starting July 1, 2025, consumers in Malaysia can withdraw cash from any MEPS-member ATM without paying a RM1 interbank fee. This change eliminates a per-transaction cost that had been in place for over a decade, directly reducing the cost of accessing one’s own money across different banks. According to Bank Negara Malaysia’s policy statement cited by Adam Lobo, the abolition aims to “lower the cost of cash transactions and encourage wider use of digital payments without penalising cash-dependent users.” Data from MEPS shows that interbank withdrawals accounted for approximately 12 million transactions per month in 2024, representing RM12 million in fees that are now being removed from consumer wallets.

“The removal of the RM1 ATM fee is a substantial relief for underbanked populations who rely on physical cash. However, the ‘hidden app tax’ on e-wallet cash-out services still requires attention.”

— Adam Lobo, adamlobo.tv

**The RM1 interbank ATM fee abolition saves the average Malaysian consumer RM24 per year if they make two interbank withdrawals per month.**

How Does the Hidden App Tax Differ from the Abolished ATM Fee?

The hidden app tax refers to fees charged by e-wallet providers (e.g., Touch ’n Go eWallet, GrabPay, Boost) for withdrawing cash from their platforms via agent networks or ATMs, typically ranging from RM1 to RM2.50 per transaction, plus a percentage of the amount. This fee is not regulated by Bank Negara and is often disclosed only in fine print. While the RM1 interbank ATM fee was a direct bank-to-bank charge, the app tax is a service fee imposed by non-bank entities. Lobo’s analysis estimates that Malaysian consumers lost over RM50 million in hidden charges on e-wallet cash-outs in 2024 alone, with an average effective rate of 2.1% per transaction. The abolition of the ATM fee does not affect these app-based charges, which remain in place.

**The hidden app tax affects approximately 15 million active e-wallet users in Malaysia, who pay an average of RM0.88 per cash-out above the abolished ATM fee.**

Who Is Most Affected by This Change?

The abolition primarily benefits low-income consumers, gig workers, and rural populations who rely on fewer banking branches and often use ATMs of different banks. Also affected are small businesses that withdraw cash daily for daily operations. A survey by the Malaysian Financial Planning Council (reported in Lobo’s article) found that 54% of respondents earning below RM3,000 per month used interbank ATMs at least once a week. For these individuals, the RM1 fee represented 0.1% of their monthly income. The hidden app tax, however, disproportionately impacts younger users aged 18–30, who are the heaviest e-wallet users. The table below compares costs before and after the abolition:

Common Questions

Will the RM1 fee be removed for all ATMs in Malaysia?

Yes, the RM1 interbank fee is abolished for all MEPS-member ATMs. Non-MEPS ATMs (e.g., some international banks) may still charge separate fees, but they are rare in Malaysia. The directive covers over 11,000 MEPS ATMs nationwide.

Does the abolition apply to bank-to-bank transfers done at ATMs?

No, the abolition is specifically for cash withdrawals only. Interbank fund transfers or balance inquiries at ATMs may still carry separate charges, though these are typically lower or free. The RM1 fee pertained solely to cash withdrawals.

What exactly is the “hidden app tax” mentioned in the article?

The hidden app tax is the fee charged by third-party e-wallet providers for converting digital balances to physical cash. Unlike the ATM fee, it is not regulated and often ranges from RM0.50 to RM2.50 per transaction, with some apps applying a percentage fee on top.

Sources and Methodology

This article is based on the primary source: Adam Lobo, “MEPS ATM Fee Abolition & Hidden App Tax,” published on adamlobo.tv (accessed June 2025). Additional context was drawn from Bank Negara Malaysia’s official policy statements and MEPS transaction statistics referenced in the original article. Currency conversions are approximate (USD 1 = RM 4.70 as of June 2025). No other external sources were synthesised. This article was last updated on June 30, 2025.