thailand roll out

Thailand to Roll Out Uniform Banking Fees by July to Reduce Costs for Individuals and SMEs

BANGKOK — The Bank of Thailand is set to introduce standardised banking fees across the financial sector starting in July, a move aimed at reducing the financial burden on individuals and small and medium-sized enterprises by capping and simplifying charges for key retail and business banking services.

Bank of Thailand Flags Suspicious Large Cash Withdrawals

Central bank governor Vitai Ratanakorn announced that a month-long public consultation period on the standardisation of banking fees is scheduled to end on May 10, after which an official announcement will follow. “The rollout could begin as early as July, or be implemented gradually on a case-by-case basis, which would help ease the burden on retail customers and SMEs,” Mr. Vitai said on Friday.

The move to standardise and reduce 10 to 15 key retail and SME banking fees reflects the lower operating costs banks now enjoy in the digital era, the central bank has said. As more customers shift to online and mobile banking, the cost of maintaining physical branches and processing paper transactions has fallen — and the central bank believes those savings should be passed on to customers.

Key proposals include lowering credit card cash withdrawal fees to a range of 2 to 2.5 percent, and capping account maintenance fees that have long been a source of frustration for retail customers. Also covered will be fees for interprovincial transfers, ATM cards and bank statements — charges that often catch customers by surprise when they use ATMs outside their home province or request paper records.

For small businesses, front-end fees for new credit lines are expected to be capped at 2.5 percent for loans up to 250,000 baht, a measure designed to make borrowing more accessible for the smallest enterprises that often struggle to meet bank eligibility requirements.

Slowing Loan Growth and Middle East Conflict Weigh on Sector

Mr. Vitai also discussed the prevailing weakness of loan growth in the banking sector, saying that economic conditions and uncertainty stemming from ongoing conflicts in the Middle East are weighing heavily on both lenders and borrowers. In response, the government and the central bank have introduced targeted financial measures to support borrower liquidity during a period of elevated energy costs and declining household purchasing power.

The central bank is seeking banks’ cooperation in supporting new lending and easing conditions for affected borrowers through three specific measures: a soft loan programme from the Government Savings Bank, the SME Credit Boost scheme, and the SME Secured Plus scheme.

Under SME Credit Boost, credit risks for financial institutions extending new loans to businesses — particularly SMEs — are reduced, helping to strengthen their business potential. The programme is also intended to support business liquidity during periods of elevated energy costs, which have been driven higher by the Middle East conflict. In addition, the scheme encourages SMEs to invest in energy transition initiatives aimed at reducing long-term energy costs, said Wipawin Promboon, assistant governor for the financial institutions policy group at the central bank.

SME Secured Plus, meanwhile, gives banks greater flexibility in valuing collateral by allowing them to consider borrowers’ cash flows alongside collateral value on a temporary basis. This measure is expected to make it easier for SMEs with collateral to access credit, even if their cash flow has been temporarily disrupted by external factors such as rising energy prices.

Household Purchasing Power Declines

The conflict in the Middle East has made global energy prices more volatile, hiking production costs for businesses and driving up the cost of everyday goods. Household purchasing power has declined as a result of higher living expenses and, in many cases, stagnating or declining incomes, directly affecting borrowers’ liquidity and debt repayment capacity.

The central bank has indicated that if banks wish to provide additional forms of financial assistance but face regulatory or operational constraints, they may consult the central bank to jointly consider appropriate approaches. Such assistance should be provided within the framework of maintaining financial system stability while ensuring appropriate support for debtors, Ms. Wipawin noted.

Thai Central Bank Unexpectedly Cuts Policy Rate to 1.00% in Bid to Bolster Economy

For retail customers and small business owners, the standardisation of banking fees — combined with efforts to boost lending — offers a measure of relief at a time when every baht counts. But the central bank’s message is clear: standardised fees are coming, but they are not a panacea. The broader economy remains under pressure, and the Middle East conflict shows no sign of abating. Lower fees help, but they cannot fix a global energy crisis. The question is whether Thailand’s banks will cooperate fully or find ways to preserve their profit margins. The consultation period ends May 10. July is approaching. The clock is ticking.

-Thailand News (TN)

Similar Posts

  • Thai Tanker Passes Safely Through Strait of Hormuz After Diplomatic Breakthrough

    BNGKOK – A Thai oil tanker has successfully transited the Strait of Hormuz following intensive diplomatic negotiations with Iran and Oman, Foreign Affairs Minister Sihasak Phuangketkeow confirmed on Tuesday, marking a significant breakthrough amid heightened tensions in the strategic waterway. Thai Oil Crisis Eases After Government Intervention The SET-listed energy firm Bangchak Corporation Plc subsequently […]

  • | |

    What’s really going on between Michael B. Jordan…

    Michael B. Jordan and Rihanna have sparked plenty of online curiosity after a recent outing together led fans to wonder whether the two stars could be more than friends. The viral sighting quickly fueled speculation, particularly because both celebrities are major names in entertainment. However, reports suggest there is no romance behind their meeting. According to the information attributed to Page Six, the outing was connected to work, and Jordan and Rihanna are simply friends. A viral moment creates dating rumors Celebrity sightings can quickly become the subject of online speculation, especially when two well-known stars are seen together away from a major public event. That appears to be what happened with Jordan and Rihanna. The pair’s recent appearance was enough for fans to begin wondering about their relationship. Social media reactions quickly turned a casual meeting into a possible romance story, even though neither star has publicly confirmed a relationship. Jordan has generally kept his personal life private. He previously described his love life as a subject he is not particularly interested in discussing publicly, while explaining that his demanding career can make relationships complicated. (Harper’s BAZAAR⁠) Their connection is reportedly professional Despite the speculation, the latest reports indicate that the outing had a professional reason behind it. Sources reportedly told Page Six that Jordan and Rihanna are friends and that their recent time together was work-related. That explanation offers a much simpler answer to the viral photos and suggests fans may have read more into the encounter than was actually there. Neither Jordan nor Rihanna has publicly announced a romantic relationship with each other, making the friendship explanation the only confirmed direction available at this point. Jordan keeps his dating life private Jordan has remained relatively quiet about his relationships throughout his career. His most public romance was with Lori Harvey, whom he dated for more than a year before their 2022 split. Since then, the actor has been linked to several women, although many of those reports were never confirmed. (People.com⁠) His private approach makes it understandable why even a simple public outing can attract considerable attention. Rihanna, meanwhile, has also remained focused on her family, music, business ventures and other professional projects. A sighting with another celebrity does not necessarily indicate a romantic connection. For now, the viral moment appears to be exactly that: a moment that generated plenty of speculation but little evidence of a romance.

  • | |

    Three injured as rival MQM-P groups clash at party…

    KARACHI: Internal differences within Muttahida Qaumi Movement-Pakistan (MQM-P) intensified on Sunday after supporters of two rival factions allegedly clashed outside the party’s Bahadurabad headquarters in Karachi, leaving at least three people injured. According to reports, tensions between supporters of the groups associated with MQM-P Chairman Khalid Maqbool Siddiqui and senior leader Mustafa Kamal escalated following a party meeting. The confrontation turned violent as workers allegedly exchanged slogans, engaged in physical fighting, and pelted stones at each other. Witnesses also reported aerial firing near the Bahadurabad headquarters during the unrest, creating panic in the area. Three people sustained injuries during the clashes. Senior MQM-P leader Dr Farooq Sattar said the dispute erupted after a meeting of party leaders at the Bahadurabad office. Speaking to the media, he alleged that supporters of one faction assaulted MPA Ejaz-ul-Haq and party leader Zakir. He further claimed that party leaders Mangla Sharma and Sabeen Ghori were also mistreated during the incident. MQM-P leader Amin Ul Haque alleged that one party worker was injured in the firing, while several others suffered injuries due to stone-pelting. He also claimed that extensive vandalism took place inside the party office and that the office’s DVR recording system was taken away. Amin Ul Haque said the matter had reached a point where it could no longer be ignored and called the incident deeply concerning for the party. Meanwhile, Dr Farooq Sattar later arrived at the Bahadurabad headquarters following the clashes as senior party leaders attempted to assess the situation and address the growing internal crisis.

  • | |

    HIV-positive children in Pakistan reach 7,500

    The number of children living with HIV in Pakistan has risen to approximately 7,500, according to the latest figures released by the federal Ministry of Health. The data highlights the growing need for improved healthcare, nutrition, and long-term support for affected children across the country. Official statistics show that around 62,000 HIV patients are currently receiving treatment in Pakistan. Children account for nearly 12 percent of all registered patients, reflecting the significant impact of the disease on younger age groups. According to the ministry, Sindh has emerged as the province with the highest number of HIV-positive children. Nearly 4,200 children infected with the virus have been registered in the province, making it the country’s largest concentration of pediatric HIV cases. In response to the situation, the federal government has sought nutritional assistance from UNICEF, the World Food Programme (WFP), the World Health Organization (WHO), and Nutrition International. The support is aimed at improving the health and nutritional status of children living with HIV. Authorities said a special program has been planned to provide nutritional supplements to HIV-positive children. Those suffering from severe malnutrition will receive therapeutic food along with continuous medical monitoring to improve their overall health and treatment outcomes. The government also plans to provide guidance to parents and caregivers on meeting the nutritional needs of children living with HIV. Health experts believe that proper nutrition plays a critical role in strengthening immunity and supporting the effectiveness of treatment. Medical experts said children infected with HIV require 10 to 20 percent more energy and protein than healthy children of the same age. They stressed that addressing malnutrition can significantly improve recovery, enhance the effectiveness of treatment, and help HIV-positive children lead healthier lives.

  • | |

    Customs seize $55,000 from Dubai-bound family

    KARACHI: Customs authorities have recovered a large amount of foreign currency from six passengers travelling from Karachi to Dubai. According to officials, the passengers belonged to the same family. Authorities recovered $55,000 in US currency and Rs950,000 in Pakistani cash from them. Officials said the passengers were carrying foreign currency above the limit permitted by the State Bank of Pakistan. The currency had also not been properly declared before their travel. The authorities took action under the Customs Act 1969 after the undeclared currency was discovered. Customs officials said the case involved six members of one family. The recovery was made during checks at the airport before the passengers could leave the country. Officials said the passengers had exceeded the permissible limit for carrying foreign currency abroad. They also failed to meet the required declaration procedures. Customs authorities stressed that travellers must comply with regulations governing the movement of foreign currency. Passengers carrying amounts above the permitted limits are required to follow the applicable declaration procedures. The incident has once again highlighted the importance of checks at international airports. Customs officials regularly monitor passengers and baggage to detect undeclared currency and other restricted items. Authorities said preventing currency smuggling remains a priority. They are maintaining strict checks to identify attempts to move large amounts of undeclared foreign currency out of Pakistan. Customs officials said they are following a zero-tolerance policy against currency smuggling. They added that action would be taken against anyone found violating the relevant laws. The recovered amount included both US dollars and Pakistani rupees. The officials did not provide further details about the intended use of the money or the identities of the passengers. The case also highlights the need for travellers to understand currency rules before leaving Pakistan. Failure to declare currency or carrying amounts beyond the permitted limits can lead to legal action under the applicable laws. Authorities are continuing proceedings in the case under the Customs Act 1969. The recovery is among the latest incidents showing the role of airport customs checks in preventing the illegal movement of currency. Officials said such measures are necessary to protect Pakistan’s financial system and enforce foreign exchange regulations. Customs authorities reiterated that passengers travelling abroad must comply with all currency declaration requirements. They said strict action would continue against attempts to move undeclared currency across Pakistan’s international borders.

  • | |

    PTI may return to Senate committees after meeting …

    Senate Opposition Leader Allama Raja Nasir Abbas has said that Pakistan Tehreek-e-Insaf (PTI) could return to parliamentary standing committees if a meeting is arranged with the party’s founder, Imran Khan. Speaking to journalists in Islamabad, Raja Nasir Abbas said that if the government wanted Parliament to continue functioning, it should facilitate a meeting between PTI leaders and Imran Khan. He alleged that deliberate ambiguity was being created about Imran Khan’s health, saying the situation was also aimed at creating divisions within the party. Raja Nasir Abbas recalled that before the passage of the 26th Constitutional Amendment, a meeting with Imran Khan had taken place on the orders of the court. He said his party wanted a government that genuinely represented the people. Commenting on Interior Minister Mohsin Naqvi’s remarks about a possible collapse of the system, he said he agreed with the assessment. He added that the problem identified by Naqvi was real, but the proposed “medicine” to address it was illegal. The Senate opposition leader also claimed that he knew why negotiations between the government and PTI had failed. He said a complete plan for negotiations had been taken to Imran Khan at Adiala Jail, adding that the opposition had held a meeting at Khyber Pakhtunkhwa House before approaching the PTI founder. “We took several proposals to the founder,” he said, explaining that they did not want to visit the Prime Minister’s House and provide legal legitimacy to the government’s position. He said the same principle was behind their decision not to hold negotiations in the Speaker’s Office, as they did not recognise the arrangements as legally legitimate. Raja Nasir Abbas stressed that he distinguished between Imran Khan and the PTI as a political party, adding that he would stand by the former prime minister “until the last moment.” He reiterated that PTI could return to the standing committees if a meeting with Imran Khan was arranged. “If the government is serious about negotiations, it should come forward and talk,” he said, adding that the opposition was ready to hold talks in the Constitution Room of Parliament House.

Leave a Reply

Your email address will not be published. Required fields are marked *