Bank Negara Malaysia has issued a revised Reference Rate Framework Policy Document (RRF PD), effective 1 July 2026, aimed at ensuring timelier and effective monetary policy transmission in practice. The revised RRF PD strengthens expectations on banks to promptly reflect reference rate changes to customers' monthly instalments for their floating retail loan or financing.

It also enhances disclosure standards for the benefit of customers. Moving forward, customers will receive prompt and clear notifications (i.e., providing detailed explanations, including breakdowns if applicable) on any adjustments to their monthly payments or financing tenure.

To ensure fair and consistent practices across the industry, the revised RRF PD also outlines clearer governance expectations to ensure banks set the right tone from the top in this regard. For instance, banks must ensure proper oversight of instalment revision processes and embed fair treatment principles within their internal policies and reviews.

These improvements aim to increase transparency and enhance customers’ understanding of their monthly instalments. This will also help customers plan their finances more effectively when interest rates change.

Issuance Date
27 March 2026

Effective Date
Phase 1:  1 July 2026
Phase 2:  2 January 2028

Issuing Departments
Jabatan Konsumer dan Amalan Pasaran
Jabatan Dasar Monetari

Documents

• Reference Rate Framework