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.

FPX Payment (Financial Process Exchange)

FPX Payment (Financial Process Exchange) is a secure online payment gateway system that allows consumers to make real time online payments by using their existing current or savings account. FPX provides consumers with the convenience to purchase at their retail websites and online stores. Consumers are not required to register to make FPX Payment.

The great thing about FPX is it allow to make payment between different participating financial institutions or banks. Currently, the participating banks are Maybank, CIMB Bank, RHB Bank, Public Bank, Hong Leong Bank and Bank Islam.

The only drawback of FPX Payment is, consumer needs to have an Internet banking account with any of the six (6) participating banks mention above. Since FPX is for online payment, there should not a bigger issue as most of the consumers who shopping online, have an online banking account.

To use FPX payment, kindly follow these simple steps,

  1. Ensure pop-up blocker of your browser is disabled.
  2. At the merchant website. Select FPX as a payment option.
  3. Select your preferred bank and you will be directed to the Internet banking log-in page.
  4. Proceed to log-in and complete the payment.
  5. Once the transaction is successful, a separate notifications will be sent from the merchant, bank and FPX System.

FPX service operating hour is from 1:00am to 12:00am daily, seven days a week, 365 days a year. However, FPX service is also dependent on the participating banks’ Internet banking service availability.

The maximum transaction limit for an individual banking account is RM 30,000.00 per transaction and RM 1,000,000.00 per transaction for a corporate banking account. However, the above limit is subject to your Internet banking transaction limit, whichever is lower.

FPX Payment System is managed by MyClear (Malaysian Electronic Clearing Corporation Sdn Bhd), a wholly-owned subsidiary of Bank Negara, the Central Bank of Malaysia. MyClear provides technical expertise as well as providing interbank switching and routing infrastructure for the banks. They will also manage the clearing and settlement on behalf of the banks for the FPX service.