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TBA Slates New Fee Structure for Bank Transactions

By on May 09, 2016 in Property News

The Thai Bankers’ Association (TBA) has finalised a new fee structure for transactional banking services, including free intra-bank and cross-zone transactions, which will come into effect after implementation of the national e-payment scheme.

The new structure, subject to approval by the Bank of Thailand, is expected to be announced before the first stage of the e-payment scheme, Any ID, takes place, said Yos Kimsawatde, head of the TBA’s payment system office, without revealing the new rates.

Fees for transactional banking services, including money transfers and payments, via digital-based channels will be lower than those made through traditional channels, he said.

“Under the new fee structure, the banking industry will waive intra-bank and cross-zone transaction fees. However, a cap on the transaction amount will remain in place in order to classify transactions between individual and commercial clients,” Mr Yos said.

Charges now start at 10 baht per transaction. Each cheque issued costs current account holders 15 baht, while banks charge a minimum of 10 baht per cheque for inter-provincial clearing. The fee for online money transfers between different banks is 25 baht per transaction for amounts of no more than 10,000 baht, and 35 baht for amounts of 10,001 to 30,000 baht.

Bulk payments are charged at 12 baht per transaction for amounts not exceeding 100,000 baht, 40 baht for 100,1001 to 500,000 baht and 100 baht for 500,001 to 2 million baht.

The national e-payment scheme, including Any ID, e-tax and a rise in the number of electronic data capture (EDC) machines, is expected to begin by July.

It aims to change the country from a cash-based society to a cashless one, stemming tax evasion and allowing the government to direct subsidies to those in need.

Mr Yos said commercial banks will gradually migrate magnetic strip ATM and debit cards to chip-embedded cards, and increase the number of EDC machines.

Mandatory chip-embedded card issuance for debit and ATM cards will come into effect on May 16 nationwide in a move aimed at enhancing financial security, according to the central bank.

There are around 30,000 EDC machines now and another 60,000 to 70,000 machines are expected to be installed by year-end. Given that the country has a population of around 70 million, the suitable number of EDC machines is about 2 million.

With the upsurge in mobile banking, transactions via ATMs and bank branches are falling and ATM numbers are expected to decline in the long run, Mr Yos said.

Source: Bangkok Post – 9 May 2016

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