Bangko Sentral stops banks from raising ATM withdrawal fees

Published September 26, 2013 3:40pm

Bangko Sentral ng Pilipinas on Thursday stopped banks from raising charges on interbank automated teller machine (ATM) withdrawals, saying it is still completing a study to discover the right balance for banks and clients on ATM fees.

Deputy Governor Nestor Espenilla Jr. told reporters at a briefing the Monetary Board decided there was enough room study if the increases were warranted after Bangko Sentral received a number of complaints.

“As a result, the Monetary Board approved the issuance of a memorandum instructing the banks to maintain the status quo in terms of both service fees and their connectivity arrangements pending completion of this study,” Espenilla said.

The central bank official also said the Monetary Board instructed BSP "to conduct a review of the disclosure practices, competition policy and consumer protection and other issues as they apply to ATM transactions."

Several banks announced a hike in inter-bank ATM withdrawal fees by 36 percent to 50 percent in the fourth quarter.

On Thursday morning, BDO Unibank Inc. said it will start raising its withdrawal fee by 36.36 percent to P15 from P11 on November 4.

For Metropolitan Bank & Trust Co. said it will charge P15 withdrawal fees on other banks' ATM cards starting October 1, 2013.

Security Bank Corp. is raising its withdrawal fees to P15 from P10 starting October 15 while retaining the ATM fee for balance inquiry at P1.00 per transaction.

Espenilla said ATMs affect a whole range of people as there are more than 13,100 ATMs nationwide.

While the central bank recognizes that banks need to cover their cost of operation, consumer protection is still a priority that's why a study will soon be conducted.

“It’s generally a study to determine what works best for the common good not only for stakeholders but for the public,” Espenilla said.

The Monetary Board is expected to review the results of the study and will decide on the next step. – Danessa Rivera/VS, GMA News

Tags: interbankatmwithdrawals, bangkosentralstopsbanksonatmfees