Banks across Malaysia will remove the RM1 fee charged for interbank cash withdrawals at ATMs and Smart Recycler Machines starting July 1, 2026, allowing unlimited free withdrawals nationwide at more than 14,000 machines [1, 2, 3, 4].
The fee waiver applies to debit card users withdrawing cash from other banks’ ATMs, a move driven by the Association of Banks in Malaysia (ABM), the Association of Islamic Banking and Financial Institutions Malaysia (AIBIM), the Association of Development Finance Institutions of Malaysia (ADFIM), and Payments Network Malaysia Sdn Bhd (PayNet) [1, 2, 3, 4]. This joint effort aims to improve access to banking services, reduce the cost of obtaining cash, and promote financial inclusivity, while easing everyday expenses for consumers, the associations said in a statement yesterday [1]. "The removal of interbank ATM cash withdrawal fee reflects the industry’s commitment in ensuring reliable, convenient and affordable access, while helping to ease the everyday financial burden of the rakyat," the statement said [1].
Despite rapid growth in digital payments, cash remains an important payment method for a large segment of Malaysians, the banks noted. "We recognise that while digital payments are growing, cash remains essential for a significant segment of the population," the joint statement said [4]. At the same time, banks will continue to promote secure and convenient cashless payment options alongside this fee waiver [2, 3, 4].
The associations emphasized the importance of customer choice. "Customers should have the freedom to choose the payment method that best suits their needs," the statement said [4].
The fee waiver was announced on June 15, 2026, and will take effect nationwide on July 1, covering all interbank cash withdrawals from over 14,000 ATMs and Smart Recycler Machines across Malaysia [1, 2, 3, 4].
