KUALA LUMPUR (Oct 9): The National Union of Bank Employees (NUBE) has hit out at an upcoming levy to be imposed by banks for over-the-counter transactions, describing it as a “precursor to revoking consumers’ rights to select their choice of banking services”.

In a statement today, the union noted banks are set to impose a levy on customers for cash and cheque transactions for card and loan repayments over the counter with effect from April 1, 2019.

NUBE general secretary J Solomon said the measure will also ultimately lead to the retrenchment of thousands of bank employees.

The new levy is believed to be pursuant to Bank Negara Malaysia’s guidelines for banking institutions to migrate paper-based payments to electronic payments to discourage customers from performing cash and cheque transactions at the counters.

Solomon said NUBE is not disputing the introduction of automation and digitalisation, but wants them implemented with a balanced approach taking into consideration the human element, the need to preserve employment and the credibility of the banking system.

Noting that the banking industry has moved from a service-based industry to fee based in recent years, Solomon said consumers are already burdened with many levies in order to enhance the banks fee-based income.

“The levies that are intended in the future have no basis whatsoever. lt needs to be emphasised that it is the primary responsibility of the banks to provide counter services to its customers,” he said.

Banks, said Solomon, should be generating profits strictly on banking transactions and not in the form of unreasonable levies imposed on consumers.

NUBE, he said, opposes any attempt to victimise consumers and bank employees under the guise of efficiency, when the real reason is to minimise cost and increase profits to banking institutions.

“Some banks have already closed branches and displaced hundreds of bank workers in the name of automation,” he added.