Malaysia float new req’s to lower costs of basic banking services

The central bank is inviting written feedback on the draft policy document.

Malaysia’s central bank has set out a proposed set of new requirements aimed at minimising the cost of basic banking services.

The requirements will require financial service providers in Malaysia (FSPs) to offer basic and low-cost deposit accounts to segments who are facing challenges in accessing the CASA programs of the FSPs, according to the proposed policy document that was published in the Bank Negara Malaysia (BNM) website.

It is also aimed at simplifying existing features and reducing barriers that prevent this segment from accessing basic banking services.

BNM also aims to enhance consumer awareness on the availability of basic banking services and ensure that the FSPs abide by the requirements through periodic self-assessment reports to the central bank.

The proposed policies will be applicable to all FSPs and will come into effect 12 months after the issuance of the final policy document.

BNM is currently inviting written feedback on the regulatory requirements suggested. The form is available on the BNM website. Feedback is accepted until 26 July 2024.