BOT cracks down on unfair bank fees

Individual customers and businesses in Thailand are set to benefit from lower service fees charged by commercial banks and other financial institutions under a new regulation issued by the Bank of Thailand (BOT).

BOT Governor Vitai Ratanakorn told the media this week that the regulation is intended to reduce the financial burden on the public and businesses, particularly small and medium-sized enterprises (SMEs).

It is also designed to revise a wide range of service charges and fees imposed by commercial banks and financial institutions, making them more reasonable and fair while ensuring that fees are categorised and applied appropriately and transparently.

Vitai said the regulation took effect on July 1, after being published in the Royal Gazette. However, commercial banks and other financial institutions have until the end of October to implement the new BOT rules.

Commercial banks and other financial institutions are not permitted to impose alternative charges to offset the fee reductions, except in cases of a significant and exceptional increase in operating costs or risks.

Instead, they are required to provide rebates to individual and business customers if they fail to implement the new regulations within the officially declared timeframe, the BOT governor said.

The new BOT regulation covers four categories of banking services: deposit-related, card-related, payment transaction-related and loan-related services.