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[$] Banks to lose RM300mil with fee cap

Banks are expected to suffer at least RM300mil in lost revenue annually due to the new interchange fee cap implementation, according to RAM Ratings.

RAM said this also depended on the amount that issuing banks are collectively projected to earn based on the new interchange fee ceiling, equivalent to at least 20% of the estimated interchange fees collected in 2014.

“Given the eventual cap of 0.48% from 2021 onwards, the industry may lose even more revenue in the long run,” it said in a statement yesterday.

To offset the loss of income, RAM said some banks had substantially scaled down their credit card reward programmes.

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