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Major Japanese banks to cut remittance fees

  • March 18, 2021
  • , Jiji Press , 10:56 p.m.
  • English Press

Tokyo, March 18 (Jiji Press)–Major Japanese banks are expected to cut their remittance fees following a decision made Thursday by an industry body to lower interbank money transfer fees that have stayed unchanged for over 40 years.
   

Japanese Banks’ Payment Clearing Network, the operator of the system for money transfers between banks, said it will lower interbank money transfer fees to 62 yen per transaction, effective from Oct. 1.
   

The interbank money transfer fees are used to calculate charges imposed on users to send money from a bank account to an account at a different bank.
   

Against this background, major banks are expected to cut their remittance fees.
   

But some regional banks are voicing concerns over negative effects on their earnings. To regional lenders, interbank transfer fees are a major source of revenues as they receive many fund transfers from accounts at big banks.
   

Japanese Bankers Association Chairman Kanetsugu Mike told a press conference Thursday that banks are expected to consider lowering remittance fees based on their respective business models.
   

In a program to implement its growth strategy adopted in July last year, the government called for lowering interbank money transfer fees to a reasonable level, saying that they had remained unchanged for more than 40 years.
   

The current fee stands at 117 yen for a transfer of less than 30,000 yen and at 162 yen for 30,000 yen or more.
   

Based on the fees, each bank sets its remittance fees. Users of three megabank lenders–MUFG Bank, Sumitomo Mitsui Banking Corp. and Mizuho Bank–pay between 220 and 330 yen when transferring less than 30,000 yen using a cash card via an automated teller machine and 440 yen to send 30,000 yen or over.

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