Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

4850

HOUSE BILL NO. _“_*

Introduced by Rep. Precious Hipolito Castelo

EXPLANATORY NOTE

It is the policy of the State to protect the interests of the consumer, promote his general
welfare, and to establish standards of conduct for business and industry.’

Nowadays, it has become the “new normal” for employers to just deposit the wages of their
employees to their bank accounts. This practice came about due to the advent of automated
teller machines (ATMs), which one can now find practically everywhere. The convenience
offered by ATM banking is now considered as an added service by numerous banks and
financial institutions.

Currently, universal and commercial banks charge cardholders of other banks P10.00 to
P15.00 for every withdrawal from their machines, and P2.00 per balance inquiry. However, it
is safe to assume that these fees are bound to increase. Last July 19, 2019, the Bangko
Sentral ng Pilipinas (BSP) issued Memorandum No. M-2019-020, which lifted the
moratorium on the increase of service fees imposed on ATM transactions. Due to this
memorandum, several banks have already sought the approval of the BSP for service fee
increases on ATM transactions.

The looming increase in the service fees charged by banks on ATM transactions will be
financially detrimental to our country's more than 58 million ATM cardholders. Even a measly
increase in the fees can already be damaging to a minimum wage earner.

It is thus apt to regulate the fees and charges imposed by banks and financial institutions for
ATM transactions. At the very least, there must be standardized fees for all ATM interbank
transactions. It is also important to set a fee ceiling for all ATM-related transactions.

The immediate passage of this bill is most earnestly sought.

* Section 2 of Consumer Act of the Philippines (Republic Act No. 7494).


Republic of the Philippines
HOUSE OF REPRESENTATIVES
‘Quezon City

EIGHTEENTH CONGRESS
First Regular Session

HOUSE BILL NO. 4850

Introduced by Rep. Precious Hipolito Castelo

AN ACT
REGULATING THE FEES AND CHARGES IMPOSED BY BANKS AND FINANCIAL
INSTITUTIONS FOR AUTOMATED TELLER MACHINE (ATM) TRANSACTIONS:

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

SECTION 1. Short Title. This Act shall be known as the “ATM Fees Standardization
Act.”

SEC 2. Declaration of Policy. It is the policy of the State to protect the interests of
the consumer, promote his general welfare, and to establish standards of conduct for
business and industry.

‘SEC. 3. Standard Transaction Fees. All banks and financial institutions shall charge
a standard fee of not more than P10.00 for all interbank transactions. All intrabank
transactions shall continue to be free of charge. Balance inquiry (intrabank and interbank)
shall also be free of charge.

SEC. 4. To fully implement the provisions of this Act, the Bangko Sentral ng Pilipinas
shall issue rules, regulations, guidelines necessary to operationalize the intent and purpose
of this Act.

SEC 5. This Act shall take effect thirty (30) days upon publication in the Official
Gazette and in at least two (2) newspapers of general circulation.

Approved,