MEPS establishes ceiling of 50 sen for funds transfer

KUALA LUMPUR: Malaysian Electronic Payment System Sdn Bhd (MEPS), an interbank network provider, today set the ceiling for its real-time Interbank Funds Transfer (IBFT) service fee at 50 sen.

It is a reduction of 50% to 88% from the current fee range of between RM1 to RM4.

The new ceiling fee, applicable for transactions at ATMs, Internet and Mobile Banking channels, will be implemented by all MEPS participating banks effective June 1, 2015.

In addition to the fee reduction, the transfer limit will also be increased from the current RM5,000 to RM10,000 by June 30, 2015 and further raised to RM30,000 by early next year.

"This is certainly good news and a boon not only for the public but businesses as well," said Group Managing Director, Zulkanain Kassim in a statement on Wednesday.

"Retail, commercial and corporate customers, including SMEs will greatly benefit from the fee reduction and increased limit," he added.

MEPS latest initiative is an incentive for the public to use its funds transfer service which is real-time, convenient and safe. 

This service, also made available via ATMs, will cater to those members of the public who have yet to adopt online banking services.

Meanwhile, Bank Negara Malaysia (BNM) Deputy Governor, Datuk Muhammad  Ibrahim said the payment industry is embarking on making a significant leap forward, with the implementation of the IBFT fee reduction and standardisation of a ceiling fee by MEPS. 

"BNM welcomes proactive initiatives by financial institutions and organisations like MEPS to accelerate the migration to electronic payments," he added.

By 2020, Muhammad said BNM aims to increase the number of e-payment transactions per capita from 72 to 200, and reduce cheques from 177 million to 100 million annually.

The IBFT is an e-payment service which allows customers to instantly and securely undertake interbank fund transfers. 

Customers are assured of a safe transfer with the recipients details displayed for the sender's confirmation. 

Upon confirmation, the recipient's account is credited instantly and funds are also made available immediately.

IBFT also includes credit card payment and loan or financing repayment for customer convenience. 

With such ease, customers no longer have the fear of wrongful crediting or missing the payment deadline. 

On top of that, there is no need to issue cheques or use a cash deposit machine for making such transfers or payments.

The IBFT showcases strong support for Bank Negara Malaysias aspiration to increase the usage of e-payment in the country, promoting wider acceptance and adoption of these handy services. - Bernama