Charging more for cheques an unconscionable act
RexPublished: Mar 6, 2014 9:34 AM | Updated: Mar 7, 2014 2:02 PM
The banking industry’s move to impose a cheque processing fee of 50 sen on the issuer of the cheque with effect from April 1, 2014 is unconscionable.
The move will further burden the people including pensioners, senior citizens, and those involved in small businesses. who are already reeling from hikes in the prices of goods and increase in daily expenses.
The Malaysian Association of Banks (ABM) and Bank Negara recently announced that this fee will be in addition to the existing stamp fee duty of 15 sen per cheque leaf. The move is a part of the banking industry’s approach to “encourage” people switching to online banking.
In addition, the ABM advised “issuers or drawers of cheques” to maintain sufficient funds in their accounts to cover the fee. The fee will be charged whenever a cheque is deposited into an account or received over the counter.
Over and above, those applying for banker’s cheque, bank draft or cashier’s order will also have to pay the fee.
However, it must be noted that government agencies, GLCs and some utility companies which still insist that payments must be made via bank drafts. These agencies do not accept cheques or cash payments.
In this respect, lest not forget that the Malaysian Competition Commission (MyCC) is an independent body established under the Competition Commission Act 2010 to enforce the Competition Act 2010.
Its main role is to protect the competitive process for the benefit of businesses, consumers and the economy. Thus, it’s imperative that the MyCC act without fear or favour regarding this issue without any delay.
It is promising to note that former senator T Murugiah, speaking as chairperson of a new NGO called Aduan Rakyat, is seeking Prime Minister Najib Razak’s intervention against the bankers’ move to impose the 50 sen charge from April 1.
In line with 1Malaysia slogan Rakyat Didahulukan, Pencapaian Diutamakan (People First, Performance Now), let us hope our prime minister (who is also the finance minister) would walk the talk by protecting the interests of the rakyat against the banking industry’s move to impose the 50 sen charge.
The move will further burden the people including pensioners, senior citizens, and those involved in small businesses. who are already reeling from hikes in the prices of goods and increase in daily expenses.
The Malaysian Association of Banks (ABM) and Bank Negara recently announced that this fee will be in addition to the existing stamp fee duty of 15 sen per cheque leaf. The move is a part of the banking industry’s approach to “encourage” people switching to online banking.
In addition, the ABM advised “issuers or drawers of cheques” to maintain sufficient funds in their accounts to cover the fee. The fee will be charged whenever a cheque is deposited into an account or received over the counter.
Over and above, those applying for banker’s cheque, bank draft or cashier’s order will also have to pay the fee.
However, it must be noted that government agencies, GLCs and some utility companies which still insist that payments must be made via bank drafts. These agencies do not accept cheques or cash payments.
In this respect, lest not forget that the Malaysian Competition Commission (MyCC) is an independent body established under the Competition Commission Act 2010 to enforce the Competition Act 2010.
Its main role is to protect the competitive process for the benefit of businesses, consumers and the economy. Thus, it’s imperative that the MyCC act without fear or favour regarding this issue without any delay.
It is promising to note that former senator T Murugiah, speaking as chairperson of a new NGO called Aduan Rakyat, is seeking Prime Minister Najib Razak’s intervention against the bankers’ move to impose the 50 sen charge from April 1.
In line with 1Malaysia slogan Rakyat Didahulukan, Pencapaian Diutamakan (People First, Performance Now), let us hope our prime minister (who is also the finance minister) would walk the talk by protecting the interests of the rakyat against the banking industry’s move to impose the 50 sen charge.
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