KUALA LUMPUR (May 20): Interbank network provider, Malaysian Electronic Payment System Sdn Bhd (MEPS) will establish a ceiling fee of 50 sen for its real-time Interbank Funds Transfer (IBFT) beginning June 1.

In a statement, MEPS group managing director Zulkanain Kassim said it would also increase the transfer limit to RM10,000 from RM5,000 by June 30 before the limit is raised further to RM30,000 early next year.

“The ceiling fee, a drop of 50% to 88% from the current fee range of between RM1 and RM4 is applicable for transactions at automated teller machines (ATMs), Internet and mobile banking channels of MEPS participating banks.

“Retail, commercial and corporate customers including small-medium enterprises will greatly benefit from the fee reduction and increased limit,” he said.

IBFT, an e-payment service, allows customers to instantly and securely transfer funds from one account in one bank to another account in another bank.

The service, also available via ATMs, will cater to people who have yet to adopt online banking services, said Zulkanain.

“Customers are assured of a safe transfer with the recipient’s details displayed for the sender's confirmation. Upon confirmation, the recipient's account is credited instantly and the funds are made available immediately.

“IBFT also includes credit card payment and loan or financing repayment for customer convenience. On top of that, there is no need to issue cheques or use a cash deposit machine for making such transfers or payments,” Zulkanain said.

He added that the service was in support of Bank Negara Malaysia’s aim to increase the usage of e-payment with transaction per capita of 200 (from 72) and cheque reduction to 177 million per year from 100 million by 2020.

MEPS, established in 1996, is part of the Malaysian financial sector that offers interbank services including cash withdrawals, credit card payments, loans or financing repayment, and cross-border cash withdrawal.