Bank Negara Malaysia (BNM) said that it plans to instruct banks to phase out the use of cheques by passing on the full cost to consumers while lowering rates to encourage electronic payment systems (EPS).

Effective May 2, interbank Giro (IBG) transactions performed online via internet banking or mobile banking will cost 10 sen, BNM said. Currently, Malaysia’s banks mostly charge RM1-2 for this transaction.

From April 2014, banks will slap on a 50 sen charge on top of a 15 sen stamp duty for each cheque issued by the consumer.

The rate will be gradually hiked until the full cost of cheque payment, which is now said to be RM3 per cheque, will be borne by the consumer.

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