BSP urged to evaluate proposal to increase ATM transaction fees

CEBU, Philippines —  The Cebu City Council is asking the Bangko Sentral ng Pilipinas to carefully study and evaluate any planned increase in transaction fees for automated teller machines as it would affect not only the Cebuanos but all bank clients.

In a privilege speech, Councilor Alvin Dizon raised his apprehensions over the impending increase in ATM transaction fees from P20 to P30 or more per interbank withdrawal or transaction.

“The impending increase would adversely affect ATM holders especially the minimum wage earners who make ATM withdrawal twice a month as the amount of the increase already constitutes eight percent of the latter’s daily minimum wage. This amount is already significant given the high costs of basic commodities and services,” he said.

On July 19, 2019, the BSP issued Memorandum 2019-020 which effectively lifted the moratorium on ATM fees imposed six years ago.

Dizon said the lifting of the moratorium would mean that banks can apply to the BSP for adjustment of their interbank withdrawal fees. As of now, he said banks charge P10 to P15 per interbank withdrawal and P2 for interbank balance inquiry.

“Any drastic increase in ATM fees will adversely affect the Cebuanos especially those who are in the lower socio-economic classes, hence, it is compelling that we give them a voice through this platform,” Dizon said.

The City Council asked the BSP to initiate public consultations so that the public will be afforded the venue to be properly heard on the issue.

The BSP was also urged to require all banks to fully disclose, in the spirit of transparency and accountability, the several fees and charges they impose on their clients in order to help them make informed decisions before making any transaction.

The BSP should also launch a public information campaign on how to save bank fees and charges by posting notices or posters within the banks premises.

“Finally, I personally share my conformity and support to any inquiry that might be called upon by the Senate or House of Representatives to probe this issue. Any inquiry will be a move in the right direction to subject our banks to public scrutiny,” Dizon said.

Dizon’s proposals were approved en masse. — FPL (FREEMAN)