Republic Bank Ltd (RBL) has halted the fee increases it originally intended to implement on May 1, 2026. The decision followed a public outcry, resulting in the bank taking down the new fee schedule from its website. Central Bank Governor Larry Howai confirmed that discussions with RBL were underway to strike a balance between the bank’s earnings and the charges passed on to customers.
Last month, RBL announced a widespread increase in fees affecting both routine transactions and penalty charges. However, following the public backlash and feedback, the bank moved to pause these fee hikes. Notably, the proposed changes included increased charges for overdrafts, insufficient funds, and some loan late-payment penalties.
In a move to support the shift towards digital transactions, RBL had also outlined increased fees for cheque books, manager’s cheques, and foreign currency drafts. Also, several account types were due for the introduction or adjustment of debit transaction fees. However, the bank clarified that these changes would only impact in-branch teller transactions, not transactions via their ATM network, online platform, or point-of-sale (POS).
The pause in fee hikes, according to RBL, is intended to provide clarity and help customers manage their money more efficiently. Central Bank’s Howai indicated that while they couldn’t issue fines for implementing a price hike, they would engage with the banks to ensure no excessive mark-up is passed onto the customers.
Business chamber heads across the country voiced their dissatisfaction, noting the implications of the fee hike on small and medium enterprises, the service sector, and citizens. Despite this, RBL recorded a profit of $1.07 billion for its half-year ended on March 31, 2026, marking a 5.4% increase from the previous year.
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