Citibank announced today that it will not charge inland exchange commission for clearance of outstation cheques from anywhere in Malaysia with effect from Nov 16. The bank said in a statement that nationwide electronic fund transfers via RENTAS (Real-Time Electronic Transfer of Funds and Securities) and GIRO are also free of inland exchange commission for customers. [source]

Apparently, Citibank is the first bank in Malaysia that abolishes the inland exchange commission for its customers. I hope the other banks in Malaysia will follow suit. Nowadays, with the advance in technology as well as with the promotion of internet banking (which saves the banks quite a lot), these little exchange commissions should be abolished in favour of the customers. Afterall, they earn big bucks from interest charges on other facilities which would be more than enough to cover their cost of the transactions described above.

It really does not make sense to conduct internet GIRO banking where each transaction is charged RM2.00 when you are only charged a couple of cents by issuing a cheque. At least Citibank has come to their senses and has boldly taken this step to reward their customers.


Technorati Tags : News , Business , Banking , Citibank , Malaysia