KUALA LUMPUR — Bank customers across Malaysia will soon be able to withdraw cash from any bank’s automated teller machine (ATM) or smart recycler machine (SRM) without paying the standard RM1 interbank transaction fee. The nationwide waiver will officially take effect on July 1, 2026.
This major consumer initiative allows all Malaysian debit cardholders to enjoy unlimited free cash withdrawals at over 14,000 terminals across the country, completely eliminating the previous restrictions of using only their own issuing bank’s network.
A Unified Push for Financial Inclusion
The decision was announced in a joint statement today by three major financial service groups, 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). Launched in close collaboration with Payments Network Malaysia Sdn Bhd (PayNet), the removal of the fee highlights a strong industry commitment to making daily banking services more affordable and accessible to the public.
The associations emphasized that while digital payments are growing fast, cash remains a critical, everyday necessity for millions of Malaysians. Removing the RM1 transaction fee is a practical step to help ease the daily living costs of the rakyat.
Under the new rules starting July 1, 2026, the old fee of RM1 per interbank transaction at non-originating bank machines will drop to zero. This means completely free, unlimited cash withdrawals nationwide for every active Malaysian debit cardholder across the entire network of over 14,000 machines.
Immediate Benefits for Local Consumers
Prior to this update, cardholders had to carefully search for their specific bank’s terminal or accept a minor penalty fee to access their funds through a competitor’s machine. Starting next month, any local bank card will work seamlessly across the entire national network at no extra charge.
The fee waiver applies broadly to both traditional ATMs and modern Smart Recycler Machines (SRMs) that handle automated cash deposits and withdrawals. By uniting the country’s physical banking hardware under a single free framework, the financial sector hopes to provide better convenience to rural and underserved communities who rely heavily on physical cash transactions.
