Domestic Transfer

Direct Debit Payment Systems in Malaysia


Direct Debit Payment System is a simple, safe and the most convenient way for consumers to pay bills or make recurring payments such as insurance premium, utility bills, loan installment payment directly from their bank account.

It is more secure than making payment by using cheque or cash, because the fund is automatically deducted from consumer account and credited directly into the merchant’s account. As the payment is fully automatic and certain, consumers don’t have to worry about their bills either forgot to make payment or lost in the mail. Automatic payment also eliminates the risk of late-payment charges.

If you are interested to enroll in Direct Debit, here are the steps.

  • Contact the organisation or company that you wish to make payment.
  • Complete the MyClear Direct Debit Authorization Form (DDA Form) to authorize a merchant to debit your bank account for the agreed amount and frequency.
  • The merchant will then notify your authorization instruction onto your bank to deduct the agreed amount from your account for verification of signature and approval.
  • Upon approval, the agreed amount will be automatically deducted from your bank account for the recurring payments to your merchant’s account.
  • Just ensure that, you have sufficient funds in your account when the payment is due.

Participating banks are Bank Islam, Bank Kerjasama Rakyat, Bank of America (M) Berhad, CIMB Bank, Citibank, Deutsche Bank, Hong Leong Bank, HSBC Bank, J.P. Morgan Chase Bank, Maybank, OCBC Bank, Public Bank, RHB Bank and Standard Chartered Bank.

Consumer may be charged for Direct Debit transaction, but the charges or fee will depend on the merchant.

There is no limit on the number of direct debit transactions or value of each transaction. You just need to ensure the fund available in the account is sufficient.

For any reason, if you need to cancel authorize direct debit instruction, simply complete the Direct Debit Authorisation Form (DDA Form) which is available from your merchant. On the form you will find ‘Type of Application’ field; please select ‘Termination’

Direct Debit is managed by MyClear (Malaysian Electronic Clearing Corporation Sdn Bhd), a wholly-owned subsidiary of Bank Negara, the Central Bank of Malaysia.

MyClear role is to provide technical expertise, interbank switching and routing infrastructure and manage the clearing and settlement for the banks.

Interbank RENTAS Money Transfer in Malaysia


Real-time Electronic Transfer of Funds and Securities System (RENTAS) is the only large value payment system in Malaysia.

It provides multi-currency real-time gross settlement of interbank fund transfers, multi-currency debt securities settlement, and depository services. Foreign currency custodian services and securities settlements are done via Euroclear link.

Normally, RENTAS is used for

  • Transfer large value of funds between banks.
  • Banks withdraw cash from their deposits (accounts) with Bank Negara Malaysia
  • Adjustments of statutory reserve requirements that the banks must hold with Bank Negara Malaysia
  • Settle money market transactions
  • Settle the ringgit part of large foreign currency transactions
  • Transfer of scripless securities such as Malaysian government debt securities that are issued in electronic form

Currently, RENTAS interbank transfer is only can be done over the counter as participating bank as internet banking does not offer this kind of facility.

When compare with Interbank GIRO transfer, the cost to make a RENTAS transfer is higher. It normally cost in between RM5 to RM14 depending on banks versus RM0.10 to RM2 for GIRO Transfer.

RENTAS Transactions are settled throughout the day, as they occur in real time. Normally, the fund will be sredited to recipient account on the same day.

Although RENTAS is designed for large value payments, there is no minimum limit for payments between member institutions. However, there is a minimum limit of RM10,000 for payments that originate from a non-RENTAS member, but this limit does not apply to payments to or from the government or Bank Negara Malaysia itself.

RENTAS is operated by MyClear (Malaysian Electronic Clearing Corporation Sdn Bhd), a wholly-owned subsidiary of Bank Negara, the Central Bank of Malaysia.

RENTAS membership is restricted to licensed financial institutions in Malaysia. The members include commercial banks, Islamic banks, Investment banks, Development Financial Institutions and non-bank financial institutions that operate in the money markets or capital market. RENTAS is also used by the government of Malaysia.


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