Banks should extend all necessary assistance to help these groups to migrate to the e-payment platform. To realise the full potential of the payment network, banks that offer cheque issuing and ATM cash withdrawal facilities should provide the full suite of funds transfer and electronic payment functionalities over the ATMs. Of the 20 banking institutions that offer ATM services, 17 of them today provide the IBFT service, a real time interbank funds transfer service that enable customers to transfer funds via the ATM in a safe and secure manner. Banking institutions are strongly encouraged to also offer the Interbank GIRO (IBG) via their ATMs as a lower cost option to the IBFT. With over 1,400 new ATMs deployment by MEPS over the next 5 years, in addition to the current 12,000 installed nationwide, there is a significant potential for the ATMs to be used as convenient access points to the public to conduct electronic payment and funds transfer transactions. The widespread availability and reach of the ATMs network should serve the needs of the public not just in the urban areas but also in the rural towns. ATM cards to be used for purchases at Point-Of-Sale terminals Whilst Malaysia has a population of about 29 million, we have a high penetration of 39 million ATM cards. The ATM cards issued by banks that are used for cash withdrawals also have the domestic debit card application which can be used at merchants’ Point-Of-Sale terminals to make purchases.
2  BIS central bankers’ speeches  The banking industry should step up its effort to counter these incidences, including the use of ink staining technology that renders the cash stolen to be worthless. This technology has been implemented successfully in countries such as the Netherlands, South Africa and Belgium with good results. Attempted robberies would cause the notes in the ATMs to be stained, rendering it valueless. Stained banknotes should not be accepted by retailers for payments and by the banks as deposits. This will serve as deterrent, sending a strong message to would be robbers. We had recently issued a guideline on the use of Ink Staining Technology for the industry. With this issuance, the banking industry should be ready to implement this initiative. Conclusion Let me conclude my speech by congratulating MEPS for the successful launch of this new initiative. MEPS’ can play an important role as the catalyst for the development and deployment of the ATM network. We hope that MEPS will also continue to collaborate and coordinate the pooling of resources for the banking industry. The banking institutions should give MEPS their full support as well. It now gives me great pleasure in officiating the launch of MEPS ATM initiative. BIS central bankers’ speeches  3