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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

Comments (30)

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written by Countach, April 14, 2008 23:02:32

Cimb bank the main culprit, they claim a house cheque takes 3 days to clear.

Better than robbing!

After robbing , .......... pretend to be a good person.


Worse than a thief!

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written by uncleleow, April 14, 2008 23:04:45

No use complaining, used to it already. New banking policy will be coming soon. Wait till PR is in power and we will kick this Zeti out.

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written by gundohing, April 14, 2008 23:12:44

Banks in Malysia are unscrupulous and the Bank Negara is there to protect their interest not people like you and me. Because banks are owned by people with interest and links with those in the corridors of power. Their attitude is no different from the UMNO elitist. I have earlier bitch about it in one of the comments about how Maybank HQ in Kota Kinabalu wanted to charge me RM20 just to replace my frayed ATM card with the magnetic strip dangling loose from years of use. RM10 for a new card plus another RM10 for them to fax my signature for verification with their branch I opend the account with (also in KK). How on earth that they have internet banking available to account holders but their inter-branch does not have an online system to verify signature is beyond comprehension. I would not waste my time complaining to Bank Negara because through experience they are never on consumer's side.

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written by lynn, April 14, 2008 23:15:26

That's right, don't complain cos no use. A foreign bank telemarketer told me I was pre-approved a loan of 25k - she said only charging 0.9% per mth interest. After 3 mths, I decided to settle the loan & guess what, I was charged almost 20% interest over the principal sum. And even then, as I insisted on full settlement, the bank refused to accept my full payment - they want me to continue the loan as they claim the bank had too much liquidity. After shouting at the top of my voice did the woman relented & did the paper work for me on settlement. The bank people had the cheek to tell me, this is all approved by Bank Negara, meaning the high interest rate. You wonder, who the **** does those govt servants at BNegara work for? For the citizens who pay your salaries or these banks? Get rid of zeti & co. Hopeless lot. Can you see all those smelly ringgit currencies floating around? Why can't those useless people at BNegara pull these soggy smelly banknotes from circulation? This country needs to replace a lot of people currently in power once PR forms the next gov't!

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written by hitam had, April 14, 2008 23:21:48

This holding period is a legacy from the time when Banks had to rely on the post office to send the cheque to the other bank to claim the money on behalf of their customer. Of course nowadays there is no excuse for continuing this practice other than for Banks to make money on the float.

Anyway, BNM promises same day clearing of cheques very soon. Hopefully they will not also prescribe that issuing cheques without adequate funds in your account will be a criminal offence like in other countries.

Pax.

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written by apanama, April 14, 2008 23:24:24

in general BANKS, LAWYERS and INSURERS are the biggest crooks to consumers.
and they keep one eye closed from up there.
ALL AGREEMENTS shoved to consumers are LOPSIDED in their favor, NEVER in the interest of consumers.

what about consumer associations? look at what hamdan is today. a professeor datuk this and that...fukc

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written by oleg avatar, April 14, 2008 23:47:05

Banking system in Malaysia is Ah Long with licence to kill from Bank Negara

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written by oleg avatar, April 14, 2008 23:50:26

What to say, When U see Anak Lanun is robbing u in daylight, U complain to Ketua Lanun (Bank Negara Malaysia). What did u expect the result is?
NOTHING will happen..

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written by raven1958, April 14, 2008 23:57:24

Just open up the sector and go back to 40 banks or more....It is the monopoly that make these bastards take Malaysians for a ride.....there is no competition....bring back Chung Khiaw, Ban Hin Lee, etc, etc.......this anchor bank screw up is Mahathir's work... a present to all Malaysians so that we suffer the rest of eternity....the PR just needs to open up the sector and let everyone compete....this screwed up service has got to stop....no point going after bank Negara... customer must be King...and customer is always King when there is open competition...not the rubbish we get now....

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written by Uncorruptible, April 15, 2008 00:01:56

Capitalist banks, what do you expect? The government will take care of it? The govt is hand in glove with them Wonder how much Zeti got to pay to get those international awards.

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written by Krazee, April 15, 2008 00:08:08

We used to have good interest for our deposits...now it's only 3%.
Try get a loan.....what's the rate ?? more than double. Who's the culprit ????
You got it...TDM. So banks are blood suckers they now charge you for almost everything.

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written by Legion, April 15, 2008 00:11:39

CIMB bank main culprit? You bet your ass on it!

Even staff bonuses, they want to pay by breaking it down into multiple installments. While they pay our bonuses late, the interests earned during the delayed payments, they take back.

Bunch of cheaters.

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written by Negarakuku, April 15, 2008 00:54:02

The people behind the banks are the big culprits.

Islam does not allowed "HARAM" capitalism but how they want to turn Malaysia to Islamic state, I wonder ????!!!

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written by durianbesar, April 15, 2008 01:12:40

I agree with Labisman here on HOW HONEST ARE BANKS IN MALAYSIA?

I share what my colleague's wife's friend told me....

HSBC Bank in PJ states branch... where this family's wife had an account with their Powervantage account.... with full internet banking .... according to the family's wife.. the HSBC bank account, had money amounting to RM 29,000 plus stolen from her account at that branch by another HSBC Bank customer from the Subang Jaya HSBC Branch... this HSBC Bank customer was caught by polis...

The HSCB Bank PJ states branch to date has not returned the money to this customer of theirs. I am told that the HSBC BANK Malaysia is being sued by the family. This event occured in early 2005 and is now 2008.

This family lives overseas... and was told by the bank to go in person to make a report to their branch.... and also to make a police report themselves.....

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written by durianbesar, April 15, 2008 01:13:22

Now here the customer puts the money in the HSBC Bank... and trusts and belives that the bank is honest and therefore safe to put their money... This is because their advertising materials all say so.... The bank puts everything in front of a prospective customer to entice them and con them into believing that their bankis the better bank than the rest.... they then further convince you that their banking is so secure that not even a speck of dust can be moved without them knowing about it.. etc... they also say that THEIR CUSTOMER COMES FIRST... and that they will go the extra mile to serve a customer......and provide all the necessary assistance to their customer...

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written by durianbesar, April 15, 2008 01:13:54

NOW WEHN a customer who had all their faith convinced by the Customer procurement policies and their advertising materials by the HSBC Bank that their bank and only their bank is the best and safest .. .. your money is safe with them... now get's stolen.... WOW....

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written by durianbesar, April 15, 2008 01:14:58

RM 29,000 plus is alot of money to many people probably not to HSBC Bank.....PJ States ... I am told that when the family called the HSBC Bank branch... that "the customer had to come in person at their branch to inform them in person".... this customer and her family lives in Bangkok..... its so funny that the world's LOCAL BANK cannot assist their customer.... the customer travelled to Bangkok whilst 7 months pregnant and with her daughter who was still breast feeding... and their son and her husband to attend to important matters such as their money being stolen from the HSBC Bank in PJ states by another HSBC Bank customer..... How did this other HSBC BAnk customer know how to access the HSBC Bank branch' in PJ's customer's account.....

All said and done.. the customer had to go to the police station in PJ state to lodge her report..... it is also been said that the customer had to incur tremendous expense in travelling many times between Bangkok and KL to resolve the matter despite being promised by the Area Manager and the branch managers at the Branch and the headoffice... the customer was also told that the bank is 100% secured... and no one could access any account... the question is proof the 100%... could there be inside jobs... etc...

Well... on the HSBC Bank's advertising materials and its policies..say it different... The customer is now taking HSBC Bank malaysia to court and after 3 years now... the HSBC Bank is to stand trial on the matter.... It will be of public interest for all our fellow bloggers here to offer moral support to this family... the High court trial is due on the 8 and 9th of May 2008 at Shah Alam....

Let's us question how a bank like HSBC deals with their customer... let's start with the customer procurement... let's all write in and ask what exactly is HSBC BANK's offer to this customer... what exactly is it that the BANK said to entice this customer to TRUST it to PLACE HER MONEY in their SAFEKEEPING....

WHAT is the policy of the BANK in procuring customers... it says so in all their advertising materials how good... friendly and secure they are... with your money.... welll...... RM 29,000 plus stolen is no king's ransom but is alot of money to most of us.....

SO it should be interesting to call and ask the HSBC BANK when they say in their policy documents on their customers that they act swiftly and efficiently and proudly boast that they are the best of breed... LET's ask them why does it take 3 years and still it cannot resolve the matter.... is it because they are too shy to say that they are liable... to someone's money they undertook to keep.....

Why is it they take 3 years.. what if it was RM 1 million may be they may take 10 years... I suppose...

Anyway. this customer consulted many QCs in UK, Australia and also a retired senior Chief Justice in Australasia and was told that this is a case of the bank failing in its obligations to its customer.. and failing to prove how come all their documents show that they have a protocol to deal with its customer... and yet It seems their process and system is now being questioned by this customer who by all may want to ask the bank to show how they look after their customer... also how they manage a new customer and how do they PROCURE a customer... and if anything like this happens...ie MONEY is missing from their CUSTOMER's account .. HOW DO THEY DEAL WITH THE CUSTOMER... when ALL their advertising and marketing materials all say that THE CUSTOMER COMES FIRST... yet in this case... it seems many polices in their system is now going to be question not only in KL but the whole HSBC BANK's policy on CUSTOMER Procurement and SAFETY of a CUSTOMER's money is now being openened up...

LABISMAN it will be good that we look at this case in greater detaill....

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written by smalluncle, April 15, 2008 05:08:10

no use complaining. Useless government. Kick them out.
This is the only solution. Not writing to Bank Negara, writing to newspaper, street protest, No, none of these will work.

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written by Tompios, April 15, 2008 06:23:24

This is very true and relevant in current life. I need this kind of letter in MT. This is bringing us far in front than only posting letters around politic, race and Mahathir the destroyer of ‘20 agreements’ for Sabah joining to form Malaysia. Yes! We must do something for this. It seems that the Banks rob our money in the day time. Just imagine, how much interest money they get from holding someone money in their banks? Of course, they will charge us with some amount of money to cash the money. As a client of bank, I also experienced the same inconvenient banks procedure when talking about cheque.

Government please does something. Robber! The bank making profit from people sufferings.

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written by bn haramjadah, April 15, 2008 06:44:18

who is the head of cimb....najib's brother, so does that answer your question.
"Anyway, BNM promises same day clearing of cheques very soon. Hopefully they will not also prescribe that issuing cheques without adequate funds in your account will be a criminal offence like in other countries. " and you beleive this, beleiving in our malaysian banks is akin to beleiving this story, a fairy tale, than you will beleive that i have a cow that milks herself and carries the milk to my kitchen door , only in Malaysia, semuanya beres

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written by Negarakuku, April 15, 2008 06:47:22

When the govt and judiciary are corrupted hence does the banks too.

The whole "Malaysia system" is wrong

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written by nguikb, April 15, 2008 08:34:53

All banks are "ah long" with legal licence to suck your blood!Bullshit legal ah long

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written by Ken Liew, April 15, 2008 08:54:12

Malaysia's system prety much wrong. Banking system, served for those abang adik of Umnos. and police, Law system, ISA, Islam, are all wrongly used by the Umnos.

the wrong system are slowing Malaysia down. And benifits only minority of Malaysian, (mostly only Umnos get those benifits)

This meaning, Umno have politic every sector of Malaysia, Law system, Bank, education, hospital, and even charity. If they would want, they even will politic the Istana.

The wrong doing of Umnos, has poisen Malaysia long enough. And now, Pakatan Rakyat are heavy loaded to correct the wrong doing of umno to this nation. Lets hope the PR's right doing is not too late.

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written by Ken Liew, April 15, 2008 08:56:11

Plus,
Banks also a victim of UMNO's greedy policy. Dont Blame the Banks, just blame it on the top guy of the bank(who he is an Umno guy).

Umno = trouble maker.

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written by AsamLaksa, April 15, 2008 09:17:12

Banks are out to make money. That's all to it.

Gundohing, you fell for unscrupulous marketing. The 0.9% interest per month is accumulative. Thus in 12 months if you do not pay any sum back, the accumulated interest is at 10.35% of your capital. You have to know the conditions of the loan. Some loans if you decide to pay up early would require you to pay up the expected profit for the remainder of original duration. Thus your 0.9% per month would exceed 20% of the capital in 2 years.

The clearing time for cheques is a big pain. I would welcome laws that would prevent banks from charging fines for insufficient funds as soon as the cheque is banked in. The insufficient funds fine should only come into play on the day the cheque bounced. Better still to not have any penalty for insufficient funds which is cleared within a set time.

Banks in UK were sued for overdraft charges that were held to be ripping off customers. Some cases were of as little as £100 overdraft incurring fines of over £1000. This was held to be disproportionate a penalty. The response by the banks included threats to potential claimants and trying to railroad insufficient out of court settlements (if it goes to court, it would create a precedent which the banks do not want). Some banks offered a full settlement only if the claimant agree not to pursue future similar claims against the bank and this was again scorned by the banking watchdog.

What we need is a consumer orientated banking watchdog in Malaysia. This is not to say to fight against banks but as a means to try and balance out the inbalance of power between the banks and the consumer. Push for a watchdog with the help of the local consumer associations if you can.

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written by colorsinlife, April 15, 2008 11:01:31

there is this thing about money market ...... where you can sell RM to BNM for one day only. the interest is about 2.5% per annum. or (about 0.0000657 meaning id you sell RM10000, you get the money returned tommorow RM10000 plus interest RM0.657 - real peanuts)
SO with 3 days float, in one day, if transaction is say RM10Billion liquidity ...
the interest is RM684000/day
or RM2.052 million for 3 days ......
or RM249.66 million in a year (pure interest and profits....)

Got the picture ....

BIG QUESTION ??? ===> who gets the money??

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written by ragingbull, April 15, 2008 11:39:50

DON'T TAKE HOUSING LOAN FROM HONG LEONG BANK TOO!

Bloody ****ing bank charge me RM50.00 just for a loan statement required for EPF withdrawal. I always think that bank should give this as a service for customer but this is really day light robbery! Service sucks to especially the branch at their car loan branch at 222. The operation staff there treat you like a begger for a loan and you are made to line up instead of queu number. If you don't pay to them, they will deduct it from your account. Bloody piss off! Just wanna check if other banks are doing the same? Appreciate some feedback coz I want to move my loan immediately.

Frankly guys, avoid Hong Leong Bank at all cost !!!

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written by gundohing, April 15, 2008 14:11:36

Asam Laksa, you got the wrong person. I was bitching about the fax charges which I believe is non-existent but the bank took advantage of it because BNM still allows it.

I too got a pre-approved personal loan from 3 banks. I am too smart to fall for it - so I turn it down. Very tempting though.. One even issued me a cheque which by banking-in the cheque triggers an automatic loan agreement. Guys dont fall for it. People has become wiser after abusing their credit cards and spending years recuperating. But the banks are now tempting you with cash loans with exorbitant interest rates! 2% may appear small but that's on a monthly basis! The banks are getting more creative these days and soon we will see 0.5% rate but on closer look it is per week! Why spend on your future income now unless you are looking a miserable future and a happier bank.

This is a lesson I learned when I transferred my housing loan for a better interest rate. Now I am stuck with it for another 2 years because I could not settle it in full unless I dont mind being penalised by paying back to the bank the "subsidised" interest rate.

Now a free man with not much money but very happy because my monthly income is intact - except for the housing loan..!

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written by Long Man, April 15, 2008 15:07:32

cutoff at 1130am ka?.... shit, all this while i thought 2pm is their cut off time... when did they change it?... (i use maybank)...

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written by AsamLaksa, April 15, 2008 18:16:54

Sorry, Gundohing, I had the wrong person. It was Lynn whom I was referring to in regards to the 0.9% interest per month loan.

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