ATM fee adjustments from more than 10 banks have already been approved by the central bank.

Although approvals for automated teller machine (ATM) fee adjustments have been made, its implementation remains a question, a senior executive from the Bangko Sentral ng Pilipinas (BSP) said.

BSP Senior Director and officer-in-charge of Fintech Subsector Vicente De Villa III said that “it may take some time” for such adjustments to manifest given the conditions set for lenders to comply.

“There will be conditions for it to be implemented. Transparency, disclosures to the public/print outs, that may take some time. It’s a timing issue,” De Villa said.

The BSP executive then said that they will be communicating with these banks to gauge whether the lender is okay to implement its proposed ATM fee adjustment.

“We can get updates from them to find out at what point they are at,” he quickly added.

Without disclosing a specific number, Deputy Governor Chuchi Fonacier said that ATM fee adjustments from more than 10 banks have already been approved, higher than the previous affirmations it gave for three lenders a couple of months ago.

“They were increased. We have approved more than 10 but the range remains the same. Average is P15 but the maximum remains at P18. There are some that are a little lower than the average, which we like better,” Fonacier said.

Previously, De Villa said that they find some banks’ proposals to hike ATM fees unreasonable, noting on their rates to be significantly higher that what they deem to be appropriate.

Also, the BSP executive reiterated what he said during a House inquiry last week that they cannot impose a cap on ATM rates as such would have repercussions and unintended consequences.

“Justifications for bank proposals will be upon our review, if it has a sound basis, then we approve. When it comes to capping it at P5 to P10, those ATM owners that are used by their non-depositors, as it is right now, their maintenance cost will not cover that P5 to P10,” De Villa said.

“It would be passed on to others. What I was trying to say is about its repercussions. (There might be) unintended consequences that may arise. It will backlash on the consumer, either through pricing or ATM expansion won’t flourish because it would be difficult to maintain, especially in the remote areas,” he added.

To recall, Fonacier said that given the increasing cost on ATM operations, financial institutions might opt to consider looking into digital solutions such as mobile banking as well as the utilization of modern technology in their operations.