KUALA LUMPUR, Malaysia -- RHB Bank Bhd will invest 40 million ringgits (approximately $10.5 million U.S.) to upgrade its automated ATM network to use smart chip technology by the end of the year, according to a report in the Financial Times.
According to RHB Bank head of consumer banking Peter England, the conversion will involve 458 ATMs and one million cardholders.
"We are aiming to replace 75 percent of our ATMs and refurbish the remaining ones by the end of the year," he said.
According to the Times, a chip-based ATM card will cost about 10 ringgits (approximately $2.63 U.S.) each.
In the wake of widespread incidents of skimming earlier this year in which thieves used cloned ATM cards to withdraw an estimated 1.2 million ringgits (approximately $316,000 U.S.), the Malaysian government has called for all banks to phase out their magnetic strip-based ATM cards and replace them with smart cards by early next year.
At least one other bank, Bumiputra Commerce Bank Bhd, has begun a pilot chip-card project, with plans to migrate completely to chip by the end of the year. (See related story Malaysian bank fast tracks ATM smart card program)
