How to Transfer Money Between Banks in Malaysia for Free

Sending money to another Malaysian bank is free for most everyday amounts. DuitNow Transfer carries no fee for transactions up to RM5,000, and many banks have also dropped the old RM0.10 Interbank GIRO (IBG) fee for online transfers. Here is exactly how each rail works, where fees can still catch you, and which option to choose in each situation.

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The two main rails: DuitNow and IBG

Malaysia runs two domestic interbank transfer systems, both operated by Payments Network Malaysia (PayNet).

DuitNow Transfer is the newer, real-time rail. Money arrives in the recipient’s account within seconds, around the clock, every day of the year. You can send to an account number or to a registered proxy such as a MyKad number, mobile number, or business registration number. The RM5,000 free-transfer limit applies to individual consumer accounts; amounts above RM5,000 attract a fee of up to RM0.50 per transaction, though several banks choose to absorb this and charge nothing at all. (Source: PayNet, 2025.)

Interbank GIRO (IBG) is the older batch-processing rail. Transfers are queued and sent in batches across the day. Settlement is not instant: a transfer made in the morning may land in the recipient’s account within a few hours, but transactions sent after the last cut-off of the day typically arrive the following business day. The standard fee set by PayNet is RM0.10 per transaction, but many banks now waive this for transfers made through internet or mobile banking.

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DuitNow vs IBG: a comparison

Feature	DuitNow Transfer	IBG
Speed	Seconds, 24/7/365	Batch, hours or next business day
Free limit (consumer)	Up to RM5,000 per transaction	RM0.10 standard; many banks waive for online
Fee above free limit	Up to RM0.50 per txn (bank-dependent)	RM0.10 per txn
Max single transaction	Up to RM50,000	Up to RM1,000,000 (business use)
Transfer to proxy (phone/IC)	Yes	No, account number only
Cross-bank reach	42+ banks and e-wallets	43+ participating banks
Best for	Everyday, urgent, or personal transfers	Large batch or non-urgent business transfers

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How to make a free DuitNow transfer

Every major Malaysian bank app supports DuitNow Transfer. The steps are nearly identical across apps.

1. Open your banking app and select Transfer or Send Money.
2. Choose DuitNow Transfer (some banks label it “Instant Transfer” or “Interbank Transfer”).
3. Enter the recipient’s account number, or their registered proxy (mobile number starting with 01x, MyKad number, or passport number).
4. Key in the amount. For amounts at or below RM5,000, the fee field will show RM0.00.
5. Confirm the recipient name that the system returns before proceeding. This is the name matched to the account.
6. Authorise with your TAC, OTP, or biometric, and the transfer is done.

The sender keeps a transaction reference. The recipient sees the credit almost immediately.

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When fees still apply

Even though the headline is “free,” there are specific situations where charges can appear.

Transfers above RM5,000. For DuitNow transfers above this threshold, PayNet’s published schedule allows banks to charge up to RM0.50. Some banks waive this entirely; others apply it. Check your bank’s current fee schedule before sending a large amount.

Over-the-counter transfers. Walking into a branch and asking a teller to make an interbank transfer is a different service. Banks apply OTC fees that can range from RM1 to RM5 or more, and these are not covered by the PayNet free-transfer rules.

Transfers through e-wallets. Moving funds from an e-wallet (Touch ‘n Go eWallet, Boost, GrabPay) to a bank account, or vice versa, follows the e-wallet operator’s own fee rules. Some e-wallets charge a withdrawal fee or impose a free-tier limit per month.

Daily and monthly cumulative limits. PayNet sets a combined daily limit of RM50,000 per account for DuitNow Transfer, IBG, and DuitNow QR combined. Your bank may set a lower personal limit on top of that. If you hit the limit, the transfer is declined, not charged, but you will need to wait until the next day or visit a branch for a higher-limit channel.

IBG online transfers. If your bank still charges RM0.10 for IBG, that applies per transaction regardless of amount. For frequent small transfers, this can accumulate. Moving to DuitNow Transfer for amounts under RM5,000 avoids this entirely.

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Practical scenarios

Splitting a restaurant bill with friends. DuitNow to their mobile number, under RM5,000, free, done in seconds.

Paying a contractor RM8,000 for renovation work. DuitNow Transfer above RM5,000, fee up to RM0.50 depending on your bank. Still very cheap relative to the amount. Confirm the fee in your app before sending.

Payroll for 50 employees. Your company’s business banking team will use IBG bulk transfer or a payroll file upload service. Fees are governed by your corporate banking agreement, not the retail fee schedule.

Sending money to a non-CIMB, non-Maybank, non-Public Bank account. Makes no difference. DuitNow works across all 42+ participating banks and e-wallets on a flat fee basis. There is no surcharge for sending to a “smaller” bank.

Topping up a fixed deposit at another bank. DuitNow Transfer works. Ensure you have the recipient account details correctly matched before confirming.

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DuitNow proxy registration: why it matters

A DuitNow proxy links your bank account to an identifier such as your mobile number or MyKad number. Once registered (through your bank app, under DuitNow or account settings), anyone can send you money using just your phone number. You do not need to share your full account number.

You can update which account a proxy points to if you switch banks, and you can deregister proxies you no longer want to use. Registering a proxy is free. The PayNet DuitNow proxy directory is managed centrally so updates propagate to all banks within minutes.

For managing your digital banking accounts, keeping your DuitNow proxy registration current is as important as updating your address with your bank.

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Protecting yourself from scams

Free and instant transfers are convenient, but irreversible. Once a DuitNow transfer is confirmed, it cannot be recalled without the recipient’s cooperation.

Before confirming any transfer, verify the recipient name shown on screen against what you expect. PayNet’s system returns the registered account holder name; if it does not match the person you intend to pay, stop and verify before proceeding.

Legitimate sellers, landlords, and service providers will not pressure you to transfer money within minutes. Urgency is a common scam tactic. If you transferred money to the wrong person or a scammer, report it immediately to your bank and to the National Scam Response Centre (NSRC) hotline at 997. Acting within the first few hours gives the best chance of a freeze on the recipient account.

For more on safe digital payments, see our guide on digital banks and e-wallets in Malaysia.

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Key takeaways

• DuitNow Transfer is free for consumer transactions up to RM5,000 per transfer, credited in seconds, available 24/7.
• IBG is the older batch rail; the standard fee is RM0.10 but many banks waive it for online transfers. Money does not arrive instantly.
• Fees above the RM5,000 DuitNow threshold are capped at RM0.50 per transaction by PayNet; some banks charge nothing.
• Over-the-counter transfers at a branch are not covered by the free-transfer rules and attract OTC service fees.
• The combined daily limit for DuitNow Transfer, IBG, and DuitNow QR is RM50,000 per account; your bank may set a lower personal cap.
• DuitNow transfers are irreversible once confirmed. Verify the recipient name on screen before approving.

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Frequently asked questions

Is there a fee for DuitNow transfers in Malaysia? No fee applies for consumer DuitNow transfers up to RM5,000 per transaction. For amounts above RM5,000, banks are permitted to charge up to RM0.50 per transaction, but several major banks waive this. Confirm your bank’s current schedule in the app before sending. (Source: PayNet Malaysia, 2025.)

What is the difference between IBG and instant transfer? IBG processes transfers in batches during business hours, so the recipient may wait hours or until the next business day. Instant transfer (DuitNow Transfer) settles in seconds, any time of day. Both are domestic interbank rails operated by PayNet. For most personal transfers, DuitNow is faster and free up to RM5,000.

Can I send more than RM50,000 per day? The PayNet-set combined daily limit is RM50,000 for retail accounts covering DuitNow Transfer, IBG, and DuitNow QR. For higher amounts, you would need to use a bank’s high-value transfer channel, which may require branch authorisation or a pre-approved higher limit tied to your corporate or priority banking account.

What happens if I send money to the wrong account? DuitNow transfers cannot be reversed unilaterally. Contact your bank immediately to report the error. The bank can place a temporary hold on the recipient account and work with the receiving bank, but recovery depends on the recipient’s cooperation. Report to the NSRC hotline (997) if you suspect fraud.

Does DuitNow work on weekends and public holidays? Yes. DuitNow Transfer operates 24 hours a day, 7 days a week, including weekends and Malaysian public holidays. IBG, being a batch system, follows business-day processing cycles and transfers sent outside cut-off times settle on the next business day.