Australian banks agree to scrap controversial 'foreign ATM' withdrawal fees

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Australia's top four banks have eliminated ATM fees, totaling about 500 million US dollars a year, as part of a public relations offensive designed to rebuild their reputations and ward off a royal commission.

After Westpac, ANZ and National Australia Bank rushed on Sunday to copy Commonwealth Bank of Australia in terminating fees on their ATMs for customers from other banks, Treasurer Scott Morrison applauded the move but cautioned all four that they must absorb the costs.

The Commonwealth Bank was the first to announce the change, with representative Matt Comyn declaring that customers would be put first.

"We have been listening to consumer groups and our customers and understand that there's a need to make changes that benefit all Australians, this is one of the steps we're taking to make that happen," Comyn said in a statement on Sunday.

"As Australia's largest bank, with one of the largest branch and ATM networks, we think this change will benefit many Australians and hopefully demonstrate our willingness to listen and act on customer feedback."

Westpac spokesperson George Frazis said the move would particularly benefit rural Australians, whose nearest ATM from their own bank might be more than 100 km away.

"This will make it more convenient for millions of Australians to conveniently obtain cash, with no additional fees. It will particularly assist Australians in rural and regional areas," he said.

It's estimated that big banks made more than 395 million US dollars from "foreign ATM" fees last year.

(With inputs from Xinhua)

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