Malaysians to Enjoy Unlimited Free Interbank ATM Withdrawals from July 1
KUALA LUMPUR: Malaysians will soon be able to withdraw cash from any bank’s Automated Teller Machine (ATM) or Smart Recycler Machine (SRM) nationwide without paying the long-standing RM1 interbank withdrawal fee.
The new initiative, which takes effect on July 1, 2026, will allow debit cardholders to enjoy unlimited free cash withdrawals across more than 14,000 ATMs and SRMs, regardless of which bank issued their card.
The move marks one of the most significant consumer-friendly changes in Malaysia’s banking industry in recent years, giving customers greater flexibility and reducing the cost of accessing cash.
The announcement was made in a joint statement issued by 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).
According to the three industry groups, the waiver applies to all ATMs and Smart Recycler Machines operated by banks in Malaysia.
“This initiative allows Malaysian debit cardholders to access over 14,000 ATMs and SRMs nationwide, regardless of their issuing bank, with unlimited free cash withdrawals,” the associations said.
They explained that the initiative was developed in collaboration with Payments Network Malaysia Sdn Bhd (PayNet) as part of the banking sector’s ongoing efforts to make financial services more accessible, inclusive and affordable.
The industry groups noted that despite the rapid growth of digital payments and e-wallets, cash remains an essential payment method for many Malaysians.
As such, ensuring affordable and convenient access to cash continues to be an important priority.
“The banking industry recognises that cash remains an important and essential means of payment for many Malaysians in managing their daily lives.
“In line with this, the removal of interbank ATM cash withdrawal fees reflects the industry’s commitment to ensuring reliable, convenient and affordable access, while helping to ease the everyday financial burden of the rakyat,” the statement said.
Industry observers believe the move will have a meaningful impact on millions of consumers, especially those living in rural areas or locations where their own bank’s ATMs are not easily accessible.
Previously, customers who withdrew cash from another bank’s ATM were charged RM1 per transaction, a fee that could accumulate over time for individuals who frequently relied on interbank withdrawals.
With the new policy, customers can choose whichever ATM or SRM is most convenient without worrying about additional costs.
The change is also expected to benefit consumers who prefer making smaller and more frequent cash withdrawals, as they will no longer incur extra charges each time they use another bank’s machine.
Analysts said the initiative reflects a broader effort by Malaysia’s banking sector to improve financial inclusion and customer experience.
While digital banking continues to expand rapidly, they noted that ensuring affordable access to cash remains equally important, particularly for senior citizens, small traders and communities where cash transactions are still widely used.
The availability of more than 14,000 ATMs and SRMs across the country effectively creates a shared nationwide network, giving Malaysians greater freedom and flexibility in managing their finances.
Beginning July 1, consumers will no longer need to search specifically for their own bank’s ATM or worry about paying extra fees, making cash withdrawals simpler, more convenient and entirely free regardless of where they bank.
