How honest are our Malaysian Banks

Have you ever chomped at the bit and grumble when a bank staff says you can use the funds of a local cheque that you just presented in THREE WORKING DAYS?

And do you sigh and be resigned to the statement that the outstation cheque you just banked in will have funds available only in EIGHT WORKING DAYS?

Now to count "working days" – the first working day is based on the time of day you banked in your cheque. Some banks use 11:30 am as the cut-off time, others at 12:00 noon (or have all banks now pakat to shorten the cut-off time to 11:30 am!)

What it means is if you bank in a local cheque by 11:30 am Day 1 starts from today, otherwise Day 1 starts from tomorrow.

However, your cheque issued to a supplier takes superspeed time to reach your bank account - within 24 hours! Your supplier, though, will have to wait the pre-conditioned three working days for a local cheque to clear and eight working days for an outstation cheque.

How does this impact on your cashflow? The following is a true event:-

My company current bank account is with RHB Bank Berhad, Labuan.

I.

09-04-08, 15:27

Banked our RHB Labuan cheque no. 573445 into the account of a KK supplier at MBB, Labuan Branch, amount RM452.00.

10-04-08, 15:45

Call from RHB Labuan, insufficient funds. Put in cash, pay penalty RM50.00.

This showed that the banks do clear local cheques within 24 hours but do not allow us to use our money. The Drawee has to wait 3 working days for funds to be available to her/him:

- 10-04-08 Thurs 1^st working day

- 11-04-08 Fri 2^nd working day

- 12-04-08 Sat Bank close

- 13-04-08 Sun Bank close

- 14-04-08 Mon Available RM452.00

Remarks:

4 nights over-night interest earned by bank on RM452.00

II.

10-04-08, 10:54

Received in payment from client an MBB Labuan cheque no. 160666 and banked into our RHB Labuan account, amount RM3,323.00.

Forced to wait 3 working days:-

- 10-04-08 Thurs 1^st working day

- 11-04-08 Fri 2^nd working day

- 12-04-08 Sat Bank close

- 13-04-08 Sun Bank close

- 14-04-08 Mon Available RM3,323.00

Remarks:

4 nights over-night interest earned by bank on RM3,323.00

And during this period we are charged RM50.00 / RM100.00 for insufficient funds.

III.

02-04-08, 10:42

Received in payment from client two Citibank, KL cheques, nos. 830779, 872786.

Banked into our RHB Labuan account, total amount RM3,740.00.

Forced to wait 8 working days:-

- 02-04-08 Wed 1^st working day

- 02-04-08 Thurs 2^nd working day

- 04-04-08 Fri 3^rd working day

- 05-04-08 Sat Bank close

- 06-04-08 Sun Bank close

- 07-04-08 Mon 4^th working day

- 08-04-08 Tues 5^th working day

- 09-04-08 Wed 6^th working day

- 10-04-08 Thurs 7^th working day

- 11-04-08 Fri 8^th working day

AND MORE ……..

On Friday, 11^th April, 2008 I wanted to withdraw the funds but NO, it is only available that NIGHT and not that DAY!!!

How’s that – to be cheated and have no where to turn to! Let’s continue with this saga:-

- 11-04-08 Fri 8^th working day but cannot use funds, only available at NIGHT

- 12-04-08 Sat Bank close

- 13-04-08 Sun Bank close

- 14-04-08 Mon Available RM3,740.00 less bank commission for outstation cheques

Remarks:

14 nights over-night interest earned by bank on RM3,740.00!!

And during this period we are charged RM50.00 / RM100.00 for insufficient funds.

I wrote a letter of complaint to Bank Negara Malaysia and passed a copy to RHB Bank Labuan.

Of course, I was ignored.

I am over 1,000 km away from Semanjung Malaysia. Sabah, Labuan and Sarawak bank customers are so conditioned to accept this “working days” rule. But we cannot continue to accept this any more. Prices are spiralling upwards, the economy is nose-diving. We need to have cash in our hands. We cannot afford the generosity of allowing banks to withhold oodles of cash from circulation while they reap interest on what is rightfully ours.

Our cries, appeals, screams can be conveniently ignored. So far away, tak dengar lah!

Now I ask you again How Honest are Our Malaysian Banks? Why is Bank Negara Malaysia so placid and accommodating to the “requirements” that the banks impose on us – millions of Malaysians who must use banks.

For all victims like me, do not remain a silent majority, write to Bank Negara Malaysia and let them know what you think. Their fax number is 03-2691 2990, also available at their website.

By RC