BSP finalizing review of ATM fees

MANILA, Philippines - The Bangko Sentral ng Pilipinas is finalizing its review of automated teller machine (ATM) fees after banks earlier announced a planned increase in said fees, the central bank chief said.

“It’s being finalized. In the meantime, while the review is still ongoing, banks should maintain status quo,” BSP Governor Amando M. Tetangco Jr. told reporters.

He added: “We’ll announce (the decision) as soon as the review is complete.”

Tetangco did not, however, expound on what has already been decided during the course of the review initiated in September.

The BSP last September blocked the banks’ planned hike in ATM fees for interbank transactions to study if such an increase is reasonable.

The central bank conducted consultations with banks and the switches, which provide the networks for the ATM such as Mega-Link, BancNet and ExpressNet.

The consultations were done to weigh in the different interests of the parties involved, including the consumers.

The central bank explained that banks have to recover their costs on putting up and maintaining their ATM units but it has to consider the amount and timing of an ATM fee hike so as not to burden the consumer.

Banks spend for the electricity, security, and even disaster recovery measures, among others, for each ATM unit.

ATM units are critical in helping banks reach more customers and are also important for consumers in need of money as terminals are open 24/7.

Consumers are charged from P10 to P15 when withdrawing on other banks’ ATM units. Other fees are applied for balance inquiry and other services.

Latest BSP data showed the number of ATM units of central bank-supervised banks reached up to 12,702 in the first quarter. Majority or 7,515 of which are located on-site or within bank branches and offices, while 5,187 are off-site.

Bulk or 10,908 of these ATM units belong to universal and commercial banks, while 1,522 are owned by thrift banks. Another 272 ATM units are owned by rural and cooperative banks.