Reduce ATM inter-bank cash withdrawal fees

In order to implement the people-centered development thinking, implement the decisions and deployments of the Party Central Committee and the State Council on fee reduction and profit distribution, adapt to the cash needs of cross-regional work, tourism, and pensions, and facilitate the lives of financial consumers, the China Banking and Insurance Regulatory Commission in conjunction with the People’s Bank of China Guide industry associations to introduce measures to reduce ATM cross-bank cash withdrawal fees. On June 25, the China Banking Association and the China Payment and Settlement Association jointly issued the “Proposal on Reducing the Handling Fees of Automatic Teller Machine (ATM) Inter-bank Cash Withdrawal” (hereinafter referred to as the “Proposal”).

Reduce ATM inter-bank cash withdrawal fees

my country’s inter-provincial and intra-provincial floating population has reached 376 million, and the population of 60 years old and above is 264 million. These changes have put forward new requirements for cross-regional, inter-bank, and age-appropriate banking services. At the same time, the development of information technology and the integration of system management have further narrowed the business differences between the same city and different places. Flattening and further reducing the handling fees of ATM inter-bank cash withdrawals in the same city and in different places will better meet the needs of the people for cash use and enhance the sense of acquisition by financial consumers.

With this adjustment, the intra-city ATM inter-bank cash withdrawal fee standard is lowered to no more than 3.5 yuan per transaction; the inter-city cross-bank cash withdrawal fee is abolished, and the variable fee charged based on a certain percentage of the withdrawal amount is cancelled. The fixed fee is consistent with the same city business standard. After the implementation of the “Proposal”, ATM inter-bank cash withdrawal fees have been significantly reduced, with a drop of more than 10% for intra-city business, and a drop of more than 80% for large-amount inter-city business. According to preliminary calculations, it is estimated that the scale of fee reduction and profit distribution is about 4 billion yuan per year.

The “Proposal” encourages banks to give further preferential treatment to the basic cash needs of financial consumers such as wage earners, the elderly, and active military personnel. Restrict the implementation of additional restrictions on card withdrawals from other banks, and require banks to disclose information about price adjustments, open channels for consultation and complaints, and ensure that fee reduction measures are implemented and benefit the people.

The “Proposal” suggests a one-month transition period. The China Banking and Insurance Regulatory Commission will work with the People’s Bank of China to promote the China Banking Association and the China Payment and Settlement Association to perform their industry self-discipline functions, and urge all banks and clearing institutions to implement fee reduction measures.