Malaysian Electronic Clearing Corporation Sdn Bhd (MyClear)

Established in 2008, Malaysian Electronic Clearing Corporation Sdn Bhd (MyClear) is a wholly-owned subsidiary of Bank Negara Malaysia (BNM).

MyClear is built to operate world-class payment systems and financial market infrastructures that safely, reliably and efficiently enable the functioning and development of Malaysia's financial system as well as the economy as a whole.

MyClear Services

• Real Time Electronic Transfer of Funds and Securities (RENTAS) - Real-time gross settlement of wholesale funds transfers and securities trades denominated in Ringgit as well as Renminbi. RENTAS' Renminbi settlement service supports Malaysia's role as a recognised off-shore Renminbi clearing hub.
• Debit Securities Services - end-to-end facilities for issuers, arrangers and investors covering the entire bond lifecycle from issuance to trade settlement and depository:
• Fully Automated System for Tendering (FAST) - automated issuance and tendering system for all government securities, BNM papers, private debt securities and money market instruments, as well as a repository of reference information of all active debt securities issued in Malaysia.
• RENTAS Depository - facilities custody of all unlisted debt securities in Malaysia. Today, we operate the largest depository for sukuk instruments in the world, as well as the largest debt securities depository in ASEAN.
• Sistem Penjelasan Imej Cek Kebangsaan (eSPICK) - Malaysia's national cheque clearing house.
• Interbank GIRO (IBG) - A funds transfer system that allows account-to-account credit transfers between 42 participating banks in Malaysia.
• JomPAY - Malaysia's national bill payment scheme where customers can pay any registered biller from Internet or Mobile banking by drawing funds from Current, Savings or Credit Card accounts. Billers need only sign up with one bank to collect payments via 42 banks.
• MyDebit - Malaysia's domestic debit card scheme, which allows point-of-sale payments using ATM cards issued by banks in Malaysia.
• FPX - Direct-to-bank Internet payment gateway, which facilitates Internet payments and e-commerce purchases using savings and current accounts.
• Direct Debit - Allows billers and merchants to debit a consumer's bank accounts on a periodic basis to collect recurring payments.

More info: http://www.myclear.org.my/

FREE IBFT Service until December 2015!

FREE FREE FREE!

From 1st October 2015 to 31st December 2015, Malaysian Electronic Payment System Sdn Bhd (MEPS) and its member participating banks are offering FREE service for Instant Interbank Fund Transfer (IBFT) via internet or mobile banking. That's right! Service fee waiver for Instant Interbank Fund Transfer (IBFT)! FREE! Zero charges! Every thing is instant! Ultimately, you get to save some of your Ringgit!

Instantly, all users get enjoy the following:

1. Interbank Funds Transfer
2. Credit Card Repayment
3. Loan Repayment
4. Financing Repayment

The participating member banks are:

Below article is cited from BERNAMA

MEPS, Banks Offer Free Interbank Funds Transfer Service From Oct 1 Till Year-end

KUALA LUMPUR, Sept 29 (Bernama) -- Malaysian Electronic Payment System Sdn Bhd (MEPS) and its member banks will waive the fee for its real-time Instant Transfer, previously known as Inter-bank Funds Transfer (IBFT) service, from Oct 1, 2015 to Dec 31 2015.

In a statement Tuesday, MEPS said the zero fee was applicable for transactions on the Internet and mobile banking channels of the participating banks.

However, the Instant Transfer fee at automated teller machines (ATMs) remained at 50 sen, it said.

In June 2015, the interbank network provider imposed a reduction of between 50 per cent and 88 per cent from the previous IBFT fee range of between RM1 and RM4 which resulted in a standardised ceiling fee of 50 sen at ATMs, Internet and mobile banking channels.

Its Group Managing Director, Zulkarnain Kassim, said the initiative showed that the banks' and MEPS' full support for Bank Negara Malaysia's (BNM) e-Payment adoption.

"In light of the current economic situation, it is also timely that the banks introduce the fee waiver that will benefit Malaysians in alleviating any financial difficulties," Zulkanain said.

By 2020, BNM is targeting to increase the number of e-payment transactions per capita from 72 to 200 and reduce cheques from 177 million to 100 million per year.

The 15 banks that offer Instant Transfer services via their Internet Banking are Agrobank, Affin Bank, Alliance Bank, Bank Islam, Bank Muamalat, Bank Rakyat, CIMB Bank, Citibank, Hong Leong Bank, Kuwait Finance House, Maybank, OCBC Bank, Public Bank, RHB Bank and Standard Chartered Bank.

The six banks that offer Instant Transfer services via Mobile Banking are Bank Islam, CIMB Bank, Citibank, OCBC Bank, Public Bank and Standard Chartered Bank.

-- BERNAMA
source: http://www.bernama.com/bernama/v8/newsindex.php?id=1175127

If you uncertain about MEPS, do check it out 'MEPS? What or Who is MEPS?'.

MEPS? What or Who is MEPS?

Grab the nearest automated teller machine (ATM) card or debit card of yours, and flip it to the back. Notice that most of the cards come with a "MEPS" logo? Ever wonder what is MEPS? Or who is MEPS?

Some Debit Cards with MEPS, some without!

So what is MEPS?

MEPS, the Malaysian Electronic Payment System, is an interbank network service provider in Malaysia, which supports domestic, development, Islamic and foreign banks.

More about MEPS?

Malaysian Electronic Payment System, formerly known as Malaysian Electronic Payment System (1997) Sdn Bhd, is a payment consortium owned equally by 11 local banks. Its subsidiary company is MEPS Currency Management Sdn Bhd (MCM).

MEPS plays the integral role in the implementation of smart cards for automated teller machine (ATM) cards, which are an upgrade to chip-based cards from previous magnetic-stripe cards issued to all banks' customers.

The card is also known as Bankcard, a card with multiple functions. There are three main functions that can be used, namely ATM (with various combinations of banking transactions), e-debit (online purchase payment) transactions at participating merchants and MEPS Cash (load in a monetary value into a bank card chip) and pay at participating merchants.

MEPS’ role encompasses:

• Development and implementation of payment services
• Provision and management of shared infrastructure for participating financial institutions
• Operating e-payment clearing and settlement systems for the financial industry
• Governing adherence to relevant standards
• Developing technical standards and specifications for the Smart Card
• Certification services for payment smart card and personalisation centres

MEPS services, through its network to all participating banks:

• Nationwide Shared ATM Network – An interbank switching infrastructure network for routine banking transactions including but not limited to cash withdrawal, funds transfer, credit card and loan repayment, account balance inquiry, mobile prepaid top-up, MEPS CASH loading and Touch n’ Go top-up
• Cross-Border Initiative – A cross-border ATM network / link with 6 countries; currently providing inter-country cash withdrawal services and will be expanded to include inter-country funds transfer and balance enquiry
• Regional Switching for Financial Institutions – Provision of ATM switching services for member banks amongst their regional branches
• MEPS ATM – Deployment of white-label ATMs which are owned and managed by MEPS. The ATMs offer services ranging from domestic and cross-border cash withdrawal, domestic balance enquiry and funds transfer. Cardholders of participating banks in Malaysia have access to these ATMs while cash advance facilities for MasterCard and Visa cardholders would be enabled soon
• Payment Multi-Purpose Card Specification (“PMPC”) – A proprietary ATM and Debit chip-card standard which was developed by MEPS. MEPS is the central coordinating body for the national implementation of the PMPC and is responsible for developing the PMPC chip card specification, technical standards, technical integration, support and coordination

Do visit MEPS official site for more information!

Knowing Instant Interbank Fund Transfer (IBFT)

In general, Instant Interbank Fund Transfer (IBFT) is an electronic fund transfer system (a paperless system) that allows payment to be made to credit card and loans immediately between accounts maintained with a participating MEPS (Malaysian Electronic Payment System Sdn Bhd) member bank.

Benefits of Instant Interbank Fund Transfer (IBFT)

IBFG allows an individual to enjoy the following benefits:

✓ immediate or real-time fund transfer to beneficiary account
✓ convenient way to transfer funds and make payment
✓ safe & reliable - Secure mode of fund transfer as it eliminates the use of cash
✓ verification of beneficiary account - the name of account holder will be displayed upon entering the beneficiary account number

Overview of Instant Interbank Fund Transfer (IBFT)
Depending on the bank, IBFT transaction can be performed via:
✓ Internet or Mobile banking
✓ ATM machine

• Service Fee: RM0.53 (Service fee RM0.50 + GST RM0.03)
• Daily Transfer Limit: RM30,000

Following points to take note:

#1. Interbanking within the same bank is normally immediate and Free of Charge (FOC).

#2. The transaction fee for IBFT to beneficiary account from other bank is subject to GST, NOT the amount of transferred fund.

#3. The exact transaction fee is subject to individual banks.
#4. The daily transfer limit may be differ for different bank.

Knowing Interbank GIRO (IBG)

In general, Interbank GIRO (IBG) is an electronic fund transfer system (a paperless system) that allows transfer of your money or Ringgit in between 42 participating financial banks within Malaysia. The IBG system is managed by Malaysian Electronic Clearing Corporation Sdn Bhd (MyClear), a subsidiary of Bank Negara Malaysia (BNM).

Purpose of Interbank GIRO (IBG)

IBG allows an individual to transfer fund in between own and even third party account for the purpose of:

✓ normal money transfer
✓ payment to loan
✓ payment to credit card accounts

Advantages of using Interbank GIRO (IBG)
This method of moving funds between different banks via IBG fund transfer is:
✓ secure
✓ fast
✓ convenient
✓ cost effective
✓ highly accessible to participating banks

Overview of Interbank Giro (IBG)
IBG transaction can be performed via:
✓ Internet or Mobile banking
✓ ATM machine
✓ Over the Counter

No	IBG Transaction	Service Fees and Charges (RM per transaction)	Daily Transaction Limit (RM per day)
1	Internet or Mobile Banking	RM0.11 (fee RM0.10 + GST RM0.01)	RM 30,000.00
2	ATM Machine	RM0.32 (fee RM0.30 + GST RM0.02)	RM 5,000.00
3	Over the Counter	RM2.12 (fee RM2.00 + GST RM0.12)	RM 5,000.00

Crediting and Refund Schedule
Under normal circumstances, the crediting and refund schedule may refer to the following:

source: http://www.myclear.org.my/

Following points to take note:

#1. Interbanking within the same bank is normally Free of Charge (FOC).

#2. The transaction fee for IBG to other bank is subject to GST, NOT the amount of transferred fund.

#3. The exact transaction fee is subject to individual banks.
#4. The crediting and refund schedule may be differ for different bank.

PIDM Eligible Protection of Deposits under DIS Category

All types of depositors, whether businesses or individuals, are protected. The maximum limit of coverage is RM250,000 per depositor per member bank. This includes both the principal amount of a deposit and the interest/return. With the RM250,000 limit, 99% of depositors are protected in full. The Malaysian Deposit Insurance System (DIS) provides separate coverage for conventional and Islamic deposits.

Deposits that are eligible for PIDM protection:

• Savings accounts 
• Current accounts
• Fixed deposits
• Foreign currency deposits
• Principal-guaranteed conventional structured products
• Islamic deposit accounts
• Bank drafts, cheques, other payment instructions or instruments made against a deposit account

PIDM may approve any other financial instruments as being eligible for deposit insurance protection from time to time.

Products that are NOT eligible for PIDM protection:

• Unit trusts, stocks and shares
• Gold-related investment products or accounts
• Conventional structured products that are not principal-guaranteed
• Deposits not payable in Malaysia
• Interbank money market placements
• Negotiable instruments of deposit (NIDs) and other bearer deposits
• Repurchase agreements

There is also separate deposit insurance protection of up to RM250,000 for a depositor with deposit accounts under each of the following categories:

• Conventional and Islamic deposit accounts
• Joint accounts - Joint accounts enjoy separate deposit insurance protection provided the records of the member bank disclose the names of the joint account holders
• Trust accounts - Beneficiaries will enjoy separate protection if the trustee discloses the interest of each beneficiary and the amounts owed to each beneficiary on the records of the member bank. Each beneficiary of the trust account is protected up to RM250,000, separately from other insured deposits held in their individual names.
• Accounts held by sole proprietorships, partnerships, professional practices and companies

Source: http://www.pidm.gov.my/

Ensure that your Ringgit is in a member bank of PIDM. If you are still unclear with PIDM, do check out 'PIDM? What is PIDM?'!

PIDM Insurer Members - Takaful and Insurance Benefits Protection System (TIPS)

Generally, PIDM's membership comprises member banks and insurer members. The Takaful and Insurance Benefits Protection System (TIPS) is a system established by the Government to protect owners of takaful certificates and insurance policies from the loss of their eligible takaful or insurance benefits in the event that an insurer member fails and is unable to honour the takaful or insurance benefits. Takaful operators and insurance companies that are member institutions of PIDM are also referred to as 'insurer members'.

 

TIPS came into effect on 31 December 2010 and is administered by PIDM. Insurer members are required to prominently display the membership sign or decal at the entrance to their offices.

The following is the list of PIDM insurer members:

1. Insurance Companies

• ACE Jerneh Insurance Berhad
• AIA Bhd. (formerly known as American International Assurance Bhd)
• AIG Malaysia Insurance Berhad
• Allianz General Insurance Company (Malaysia) Berhad
• Allianz Life Insurance Malaysia Berhad
• AmGeneral Insurance Berhad
• AmMetLife Insurance Berhad (formerly known as AmLife Insurance Berhad)
• AXA Affin General Insurance Berhad
• AXA Affin Life Insurance Berhad
• Berjaya Sompo Insurance Berhad
• Etiqa Insurance Berhad
• Gibraltar BSN Life Berhad (formerly known as Uni.Asia Life Assurance Berhad)
• Great Eastern Life Assurance (Malaysia) Berhad
• Hong Leong Assurance Berhad
• Lonpac Insurance Bhd.
• Manulife Insurance Berhad
• MCIS Insurance Berhad (formerly known as MCIS Zurich Insurance Berhad)
• MPI Generali Insurans Berhad (formerly known as Multi Purpose Insurans Bhd)
• MSIG Insurance (Malaysia) Bhd.
• Overseas Assurance Corporation (Malaysia) Berhad
• Pacific & Orient Insurance Co. Berhad
• Progressive Insurance Bhd.
• Prudential Assurance Malaysia Berhad
• QBE Insurance (Malaysia) Berhad
• RHB Insurance Berhad
• The Pacific Insurance Berhad
• Sun Life Malaysia Assurance Berhad
• Tokio Marine Insurans (Malaysia) Berhad
• Tokio Marine Life Insurance Malaysia Bhd.
• Liberty Insurance Berhad (formerly known as Uni.Asia General Insurance Berhad)
• Tune Insurance Malaysia Berhad (formerly known as Oriental Capital Assurance Berhad)
• Zurich Insurance Malaysia

2. Takaful Operators

• AIA Public Takaful Bhd. (formerly known as ING Public Takaful Ehsan Berhad)
• AmMet Life Takaful Berhad (formerly known as AmFamily Takaful Berhad)
• Etiqa Takaful Berhad
• Great Eastern Takaful Berhad
• Hong Leong MSIG Takaful Berhad
• HSBC Amanah Takaful (Malaysia) Berhad
• MAA Takaful Berhad
• Prudential BSN Takaful Berhad
• Syarikat Takaful Malaysia Berhad
• Sun Life Malaysia Takaful Berhad
• Takaful Ikhlas Berhad

3. Non-Member Institutions

• Reinsurance companies and retakaful operators
• International takaful operators licensed under the Islamic Financial Services (IFSA) Act 2013
• Financial guarantee insurers such as Danajamin Nasional Berhad
• Offshore insurance companies
• Other players in the insurance industry, such as insurance brokers and adjusters

Source: http://www.pidm.gov.my/

If you are still unclear with PIDM, do check out 'PIDM? What is PIDM?'!

PIDM Member Banks - Deposit Insurance System (DIS)

Generally, PIDM's membership comprises member banks and insurer members. The Deposit Insurance System (DIS) is a system established by the Government to protect depositors against the loss of their insured deposits placed with member institutions in the event of a member institution failure. Commercial and Islamic banks that are member institutions of PIDM are also referred to as 'member banks'. Be sure that you are aware of the eligibility protection of deposits under DIS category.

All commercial banks licensed under the Financial Services Act (FSA) 2013 and all Islamic banks licensed under the Islamic Financial Services Act (IFSA) 2013, including locally incorporated subsidiaries of foreign banks operating in Malaysia, are member banks of PIDM. Membership in PIDM is compulsory as provided under the Akta PIDM.

Member banks are required to prominently display the membership sign at the entrance of their branches.

The following is the list of PIDM member banks:

1. Commercial Banks

• Affin Bank Berhad
• Alliance Bank Malaysia Berhad
• AmBank (M) Berhad
• Bangkok Bank Berhad
• Bank of America Malaysia Berhad
• Bank of China (Malaysia) Berhad
• Bank of Tokyo-Mitsubishi UFJ (Malaysia) Berhad*
• BNP Paribas Malaysia Berhad*
• CIMB Bank Berhad
• Citibank Berhad*
• Deutsche Bank (Malaysia) Berhad*
• Hong Leong Bank Berhad
• HSBC Bank Malaysia Berhad
• Industrial and Commercial Bank of China (Malaysia) Berhad
• India International Bank (Malaysia) Berhad
• J.P. Morgan Chase Bank Berhad
• Malayan Banking Berhad
• Mizuho Bank (Malaysia) Berhad (formerly known as Mizuho Corporate Bank (Malaysia) Berhad)
• National Bank of Abu Dhabi Malaysia Berhad
• OCBC Bank (Malaysia) Berhad
• Public Bank Berhad
• RHB Bank Berhad
• Standard Chartered Bank Malaysia Berhad
• Sumitomo Mitsui Banking Corporation Malaysia Berhad
• The Bank of Nova Scotia Berhad
• The Royal Bank of Scotland Berhad
• United Overseas Bank (Malaysia) Berhad

*denotes this bank provides Islamic banking services under the Skim Perbankan Islam (SPI). SPI is defined by Bank Negara Malaysia as the Islamic banking scheme provided by licensed institutions to conduct banking business based on Islamic principles.

2. Islamic Banks

• Affin Islamic Bank Berhad
• Alliance Islamic Bank Berhad
• Al Rajhi Banking & Investment Corporation (Malaysia) Berhad
• AmIslamic Bank Berhad
• Asian Finance Bank Berhad
• Bank Islam Malaysia Berhad
• Bank Muamalat Malaysia Berhad
• CIMB Islamic Bank Berhad
• Hong Leong Islamic Bank Berhad
• HSBC Amanah Malaysia Berhad
• Maybank Islamic Berhad
• Kuwait Finance House (Malaysia) Berhad
• OCBC Al-Amin Bank Berhad
• Public Islamic Bank Berhad
• RHB Islamic Bank Berhad
• Standard Chartered Saadiq Berhad

Source: http://www.pidm.gov.my/

If you are still unclear with PIDM, do check out 'PIDM? What is PIDM?'!

PIDM? What is PIDM?

PIDM? Sounds familiar with PIDM? Came across when you walk in to certain bank for your Ringgit? And what is PIDM?

Established in 2005, PIDM, or its full name 'Perbadanan Insurans Deposit Malaysia', is a Government agency that primarily function to protect:

1. Deposit Insurance System (DIS)

- a system established by the Government to protect depositors against the loss of their insured deposits placed with member institutions in the event of a member institution failure.
- in the unlikely event of a member bank fails, depositor's saving in PIDM member banks of up to RM 250,000.00 per institution for per person.

Source: http://www.pidm.gov.my/

2. Takaful and Insurance Benefits Protection System (TIPS)

- a system established by the Government to protect owners of takaful certificates and insurance policies from the loss of their eligible takaful or insurance benefits in the event that an insurer member fails and is unable to honour the takaful or insurance benefits.
- in the unlikely event of an insurer member fails, the owner of takaful certificates and insurance policies of up to RM 500,000.00 is guaranteed by the PIDM.

Source: http://www.pidm.gov.my/

Without the need to apply and without paying any premium fees (YES! It is absolutely FREE!), your hard earned Ringgit is automatically protected by PIDM (of course provided that the institution is a member of PIDM). In other words, you could enjoy these benefits instantly, just be sure that you are aware of the list of PIDM member banks as well as the list of PIDM insurer members.

Apart from that, under Akta PIDM, PIDM is also mandated to provide incentives for sound risk management in the financial system, as well as promote and contribute to the stability of the financial system. Internationally, PIDM is also known as the Malaysia Deposit Insurance Corporation (MDIC).

TIPS:

#1. If your deposited Ringgit in bank (PIDM member bank) has more than RM 250,000.00, you are highly advised to separate and diversify the additional Ringgit into another PIDM member bank. This is for security purpose. As the saying goes, "don't put all your eggs in one basket". As a gentle reminder, be sure that you are aware of the list of PIDM member bank.

#2. In a single PIDM member bank, your deposited Ringgit is inclusive of Savings Account, Current Account, Fixed Deposit, etc. Do find out the eligibility protection of deposits under DIS category.