Money transfer deduction

Money transfer deduction

From Republika

On Aug. 13, 2001, I transferred money totaling Rp 5 million from NatWest Bank in the UK to my friend's account at the Jakarta branch of Niaga Bank. As the transfer was made in rupiah, I then paid completely the transfer charge of 20.40 pounds sterling in the UK in order that the beneficiary could receive the money in full.

However, the funds received in my friend's account were actually only Rp 4,047,731. There was a strange deduction of almost Rp 1 million. In terms of value, this amount may not be much but, in percentage terms, it was nearly 20 percent of the sum transferred. Niaga Bank had actually no right to make any deduction from the transfer as there was no different exchange rate for the money transfer and the sender had paid the transfer fee in full.

In comparison, I have made money transfers several times from NatWest Bank in the UK to BNI and BTN, both state-owned banks, as well as to NISP bank, a private one, and none of them made any deduction from the funds as the fee had been paid.

I call on the relevant authorities in Niaga Bank to clarify the matter and to transfer the funds deducted back to my friend's account. Should there be no explanation, I call on all readers to be careful when making money transfers via a bank, in particular Niaga Bank.

DERMAWAN WIBISONO

United Kingdom