KBZ Bank joins Myanmar’s interbank transfer system

KBZ Bank account holders will be able to transfer money to other banks in Myanmar after the bank launched its digital interbank transfer system on December 15.

“Digital money transfer can now be done easily and safely between local banks,” said KBZ deputy managing director Mr Robin Chua.

Users can transfer a maximum of K 1 million per transfer. A limit of K5 million is allowed per day.

KBZ users can transfer money to Myanmar Apex Bank , Yoma Bank, uab Bank, Myawaddy Bank, Rural Development Bank and A Bank.

The Central Bank of Myanmar has set the service charges at K300 per transfer and KBZ will collect 0.05 percent to 0.1pc for each transfer. Senders will also need to pay a fee which will be collected by the recipient’s bank.

The move is expected to encourage the digital transfer of money and eliminate the need to be physically present at a bank during COVID-19.

It also comes after the launch of the Central Bank of Myanmar Financial Network System 2 (CBM-NET2), which is the upgraded version of the original CBM-NET, on November 16.

CBM-NET is a secure and efficient payment and settlement infrastructure, set up to facilitate and digitalise banking and finance in Myanmar. CBM-NET first went live in January 2016, providing the financial sector with a real- time gross settlement system, making the once-manual process of clearing and settling payments almost entirely electronic.

Supported by the Japan International Cooperation Agency, CBM-NET2 was developed in response to the surge in online transactions via mobile banking and based on the national payment systems in Japan. The system enables interbank transactions between all Myanmar banks, including commercial, state-owned as well as foreign banks which are licensed to do business in the country. Additional features will be added to the system over the first half of 2021.

The launch of CBM-NET2 will enable 24/7 domestic local currency remittance between different banks and make formal remittance services more accessible to those who have previously relied on cash payments and high-risk informal remittances. It will also help facilitate bulk payments such as payroll transfer and automatic withdrawal of taxes and utilities bills.

Source : Myanmar Times