‘NO ATM FEE HIKE SANS PRIOR APPROVAL‘
The BSP assures the public that its policy on ATM fees is guided by best industry practices and that it is driven with the broader welfare of consumers in mind
The various banks may not set automated teller machine or ATM fees on their own and without prior regulatory approval, the Bangko Sentral ng Pilipinas (BSP) said on Tuesday.
The BSP stressed this point in a statement released in the wake of a report claiming the moratorium on ATM charges has lifted, allowing lenders to charge rates they consider appropriate.
“The BSP acknowledges the concerns of the banking public on news reports about the possible increase in ATM fees. The BSP assures the public that its policy on ATM fees is guided by best industry practices and that it is driven with the broader welfare of consumers in mind,” the central bank said.
“Towards this end, the BSP has issued regulations that require banks to adhere to the principles of reasonable and market-based pricing in their ATM operations,” it added.
According to the regulator, lenders cannot merely hike their ATM fees and that a request to the BSP must first be done indicating the proposed charges and the costs incurred by the bank at its ATM operations.
The BSP said the declared costs “must clear, properly supported and may be counter-checked by the BSP when deemed necessary.”
It also said the regulator has the last say and may disallow “the imposition of set fees arising from agreements between market participants.”
“In any case, said fees should be lower than the fees collected from transactions made over-the-counter and comply with transparency in pricing,” the BSP added.
The regulator assured the public that it will “examine each request and decide if the increase is warranted to cover the cost of maintaining the ATM” and should the need validated, the increase will be reasonable and comply with best industry practice.
Earlier, the House of the Representatives led by Makati City Rep. Luis Campos Jr., proposed an inquiry into the planned hike given the large number of ATM users in the country.
“We are worried that the forthcoming increases in ATM charges might harm consumers — the nation’s more than 58 million ATM cardholders,” Campos said.
“Even more vulnerable are our estimated 4.1 million minimum wage earners. Many of them receive and withdraw their salaries twice a month through their ATM cards at the machines nearest them,” he added.