AYA bank reconsiders its plan to collect service fees after backlash

AYA Bank is reconsidering a decision to collect K500 in service charges for maintaining customers’ savings accounts starting from January 1 and they will officially announce the collecting system and period. The bank has announced on December 24 that it would automatically deduct K500 from customers as a monthly fee for maintaining their savings accounts (excluding fixed deposit accounts) starting January1, 2021.

After customers criticised its decision to do so however, the bank removed the statement for hours later. It is also clarified that the announcement was meant to be an internal one for now and that fees will be inevitable in the long run. Currently, they will not consider the monthly fees. They are thinking about once a quarter instead but a formal decision has not been made yet. They pointed out that fee deductions represent normal practice in international banks.

In the view of account holders, banks are already earning from spread between the rates for deposits and loans. Without accepting deposits, banks cannot survive. Service charges on ATM cards or credit cards are acceptable but being charged to maintain the deposit account isn’t acceptable. According to the Central Bank of Myanmar, it is not yet standard practice for Myanmar banks to collect service charges on deposits. However, the banks can choose to do so and there is no requirement to submit an application to the Central Bank.

Source: Myanmar Times

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