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.