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Republic of the Philippines f
HOUSE OF REPRESENTATIVES {
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

HOUSE BILL No. 4019

Introduced by
BAYAN MUNA Representatives CARLOS ISAGANI T. ZARATE,
FERDINAND R. GAITE and EUFEMIA C. CULLAMAT

AN ACT
REGULATING THE RATE OF FEES AND CHARGES THAT BANKS IMPOSED
FOR AUTOMATED TELLER MACHINE (ATM) TRANSACTIONS AND FOR
OTHER PURPOSES

EXPLANATORY NOTE

This Bill seeks to regulate the rate of transaction fees and charges on automated teller machines
(ATMs) by banks and require the posting of a notice of said fees and charges on ATMs’ screens
and monitors prior to the completion of any transaction.

‘The advent of ATM banking has allowed bank account holders to access their accounts any
time of the day or night. However, this convenience does not come without a price. Banks
offering ATM services impose fees and charges, normally ATM users who are non-depositors
of their bank, for each transaction successfully made. The amount of fees and charges varies
from one bank to another depending on the type of transaction made.

As of August 2019, banks are charging P10 to P15 per interbank withdrawal transaction and
P2 per interbank balance inquiry. With different ATM transaction fees and charges, ATM users
often get confused as to the remaining balance of their bank accounts after making a transaction
or series of transactions. Worse, some ATM users are not informed of the fee or charge imposed
or automatically deducted from their bank account, This often results in agitation from unwary
ATM users when they belatedly find out about these prohibited fees and charges.

Banks with ATM facilities should therefore serve the public and spare them from unnecessary
trouble or anxiety by imposing at least a standard rate of ATM transaction fees and charges.

Likewise, banks should be required to post a notice of these transaction fees and charges on
their ATMs’ screens or monitors prior to the completion of any transaction in order to
adequately inform and protect ATM users against any hidden fees or charges.

This Bill was first filed by Bayan Muna Representative Teddy Casifio in the 15% Congress and
was refiled by Representatives Carlos Isagani Zarate and Neri Colmenares during the 16"
Congress.

In view of the foregoing, passage of this bill is earnestly sought.



Approved,

Rep. CARLA af T. ZARATE

Bayan Muna Party-List

Rep. FERDINAND R. GAITE
Bayan Muna Party-list

a

Rep. EUFE! CULLAMAT
Bayan Muna Party-list



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session
4019

HOUSE BILL No.

Introduced by _
BAYAN MUNA Representatives CARLOS ISAGANI T. ZARATE,
FERDINAND R. GAITE and EUFEMIA C. CULLAMAT

AN ACT
REGULATING THE RATE OF FEES AND CHARGES THAT BANKS IMPOSED
FOR AUTOMATED TELLER MACHINE (ATM) TRANSACTIONS AND FOR
OTHER PURPOSES

Be it enacted by the Senate and House of Representatives of the Republic of the Philippines in
Congress assembled:

SECTION 1. Short Title—This Act shall be known as the ATM Fee Regulation Act of 20019.

SECTION 2. Declaration of Policy — Itis the policy of the State to promote the general welfare
of the people. Pursuant to this policy, this Act seeks to set a standard rate of fees and charges
for automated teller machine (ATM) transactions and require banks to post these fees and
charges on their automated teller machines.

SECTION 3. Standard Transaction Fees — All banks operating and providing automated
teller machine services shall, within two (2) months from the effectivity of this Act, charge a
standard rate of transaction fee for members and non-members alike according to the following:

a. Intrabank transaction — no charge;

b. Interbank transaction — not more than P5.00 per transaction;

c. Balance inquiry (intrabank and interbank) — no charge.

For purposes of this Act, “transaction” shall include, but not limited to, balance inquiry,
deposit, withdrawal or fund transfer.

Banks are likewise required to disclose the amount of fees they charge and collect from ATM
users for every transaction. The fees shall be conspicuously posted on the screens of automated
teller machines prior to the completion of any transaction.

SECTION 4. Penalties - Any director, officer or agent of the bank who will violate this Act
shall, upon conviction, be punished with a fine of not less than Fifty thousand pesos
(P50,000.00) but not more than Two hundred thousand pesos (200,000.00) or imprisonment
of not less than two (2) months but not more than one (1) year, or both, upon the discretion of
the court.

SECTION 5. Implementing Rules and Regulations — The Bangko Sentral ng Pilipinas shall,
within sixty (60) days from the effectively of this Act, issue rules and regulation as may be


necessary to effectively carry out the provisions of this Act.

SECTION 6. Repealing Clause — All laws, decrees, executive orders, rules or regulations and
other issuances, or parts thereof, which are inconsistent with the provisions of this Act, are
hereby repealed or amended accordingly.

SECTION 7. Effectivity — This law shall take effect fifteen (15) days after its publication in
the Official Gazette or in two (2) national newspapers of general circulation,

Approved,