Why dispense only $50 notes, POSB?

When he wanted to withdraw less than $50 from an ATM, he couldn't.

It turns out that particular ATM was among some 275 which were reconfigured to dispense only $50 notes since last October.

Furniture consultant Shah Pakri, 40, was so upset with the change that he wrote a letter to The Straits Times forum last month about the issue.

He added: "It's ironic that POSB, which is supposed to be the people's bank, is inconveniencing low-income earners."

He is not alone.

Another customer, housewife Florence Siah, 65, said she has never used the "$50-only" machines as she needs small change for buying groceries.

"I always use the old ATMs. But I now have to queue longer for them."

A DBS spokesman confirmed the move and said it was made to increase the effectiveness and convenience for the majority of its customers.

The spokesman explained that the ATMs were reconfigured because of the withdrawal patterns of its customers.

DBS has over 1,500 self-service machines - including 1,100 ATMs - around the island. In comparison, UOB and OCBC each have over 600 ATMs here. 

It was observed that more customers were withdrawing larger amounts at ATMs in certain areas, like in the Central Business District (CBD), she said.

The spokesman said: "We've noticed that with this change, these machines have experience less 'out of cash' scenarios, thus reducing customers' inconveniences."

TNP understands that each ATM has a fixed number of cartridges which can hold dollar notes within the machine. This means that ATMs which do not dispense $10 notes can hold more $50 notes, and are less likely to run out of them.

Mr Zaqy Mohamad, a Member of Parliament (MP), who sits on the Government Parliamentary Committee for Finance, Trade and Industry, said that while he could understand the motives behind the move, he was concerned that some of the "$50-only" ATMs were located in heartland areas like Geylang Serai.

The MP for Chua Chu Kang GRC noted that Joo Chiat Complex is frequented by many heartlanders, including residents from low-income families.

He said: "If ATMs there only disperse $50, then these customers will not appreciate this. "After all, they need small change to buy things from coffee shops and tidbit shops in the area."

He felt customers unhappy with the move should provide feedback to DBS about their needs.

"The bank might also like to survey the customer attitudes in those locations to gauge the response to these machines," he said. 

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