According to Bank Negara Malaysia, this is to encourage more parties to use digital payment methods instead of cash.
However, the waiver will only be applicable for fund transfers amounting to RM5,000 and less, made by individuals as well as Small and Medium Enterprises (SMEs).
In addition, the central bank will also increase the current cheque processing fee from 50 sen to RM1 effective January 2, 2021.
Bank Negara Governor Tan Sri Muhammad Ibrahim says, it is time for Malaysia to accelerate its transition from cash to digital.
“We must embrace the next wave of technological and e-payment transformation. As a nation, we need to rise and seize this exciting opportunity, take a proactive rather than reactive role.
“We need to bereft ourselves of the inertia to move forward with the times,” he said while delivering the keynote address at the 2017 Payment System Forum And Exhibition here today.
Muhammad said, by accepting payments via debit or credit cards, Malaysian businesses had saved a total of RM422.4 million from 2015 to September this year.
He also reiterated the importance of Malaysia doing away with cheques as a mode of payment.
“Our study shows that the unit cost for cheque processing by banks has increased from RM3 in 2011 to RM4 in 2016, and is estimated to be RM6 by 2020.
“At 120 million cheques currently, this translates into an enormous cost of RM484 million, a sheer wastage to the economy,” he said.