Thursday, August 15, 2024

Wee tells BNM to reduce downtime limit for banks

 

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Wee tells BNM to reduce

downtime limit for banks

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MCA president Wee Ka Siong says the current policy, which allows unplanned downtime of up to four hours per year and a maximum 120 minutes per incident, is too lenient.

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MCA president Wee Ka Siong said any unplanned disruption in banking services could cause significant inconvenience and chaos for users.

PETALING JAYA
MCA president Wee Ka Siong has urged Bank Negara Malaysia (BNM) to review its policy allowing financial institutions a total unplanned downtime of up to four hours per year and a maximum of 120 minutes per incident.

In a video posted on Facebook, Wee said the central bank’s current policy was too lenient.

“BNM should tighten these limits to ensure that all banks prioritise compliance. This is in the interest of consumers.

I believe the allowed downtime period needs to be reduced as this will force banks to invest more in strengthening their online service systems, given that the public increasingly relies on electronic payments.

He said any unplanned disruption could cause significant inconvenience and chaos for users.

Yesterday, it was reported that BNM had imposed a fine of RM4,320,000 on Malayan Banking Bhd and RM760,000 on CIMB Bank Bhd over their prolonged service disruptions.

BNM said it imposed the fines for non-compliance with the Financial Services Act 2013 and the Islamic Financial Services Act 2013, as well as the central bank’s policy document on risk management in technology.

The fine on Maybank was imposed over the service disruptions to the bank’s regional mobile banking platform and MAE applications on June 1, 2023 and May 31 this year.

CIMB, on the other hand, was fined for prolonged service disruptions across its e-banking channels, automated teller machines, as well as debit and credit card systems on April 8 and 9.

Wee said the fines imposed on Maybank and CIMB were equivalent to only 0.03% and 0.01% of the banks’ pre-tax profits respectively for 2023.

These amounts are significantly lower compared with the merchant fees charged by the banks,
 he added.

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