The war on cash continues in Malaysia with the latest push for you as a consumer towards making electronic payments.
The e-Payment Push
Bank Negara Malaysia (BNM) is continuing to drive a migration to electronic payments (e-payments). This was set out in BNM’s Financial Sector Blueprint 2011-2020 with e-payments as a key enabler for greater economic efficiency to be cost-effective, safe, fast, and easy to use.
- Conducive pricing structure to incentivize the use of e-payments.
- Enhance e-payment infrastructure to widen accessibility, enhance convenience, and strengthen security.
- Promote greater awareness in benefits of using e-payments.
BNM Goals by 2020
- Increase the number of e-payment transactions per capita from 44 transactions to 200 transactions.
- Reduce cheques by more than half from 207 million to 100 million per year.
- Increase debit card transactions per capita to 30.
- Increase no. of EFTPOS (Electronic Funds Transfer at Point Of Sale) terminals per 1,000 inhabitant to 25.
Key e-Payment Initiatives
- May 2, 2013: Inter Bank Giro (IBG) transactions priced at RM0.10.
- Apr 1, 2014: Cheque processing fees of RM0.50.
- Jan 1, 2016: 2 Factor Authentication (2FA).
- Jan 1, 2017: Migration to Pin & Pay.
- Mar 31, 2017: SWIFT Mandatory Customer Security Requirements.
- Jul 1, 2018: Cheque payments by insurance agents for policy holders no longer accepted.
How does the Latest e-Payment for Insurance Affect You?
If you have been making cash payments or bank transfers to your insurance agent, you are no longer able to do so from July 1st, 2018.
Your insurance agent will also NOT be able to make payments from their current/savings account on behalf of policyholders.
Can you as a policyholder still submit a cheque payment?
Yes, provided the following conditions are met:
- Cheque belongs to proposer, life assured, absolute assignee, or proposer’s company.
- Cheque payment is for quarterly, bi-annual, or annual. Monthly payment option is NOT accepted.
What alternatives do you as a policyholder have to make payment?
You can make payments for your insurance policy using the following channels:-
- Online banking
- Credit card
- Debit card
- Cash payment at counter
What if you as a policyholder do not have a credit card?
A 3rd party credit/debit card is accepted in making payments for immediate family members.
Q: Can agents make payment on behalf of policyholders for loan repayment, single premium top up, medical card replacement fees, stamp duty, advanced premium account, and policy fees purpose?
A: Yes, payment can be made over-the-counter via cash/cheque.