In a move that’s drawing criticism from consumers, banks across Pakistan have quietly increased the charges on cash withdrawals made from ATMs of banks other than the cardholder’s own. The per-transaction fee has gone up from Rs 23.44 to Rs 35.00, marking a sharp hike of nearly 50%.
This means that every time a customer withdraws money from an ATM that doesn’t belong to their bank, Rs 35 will be deducted in addition to the withdrawn amount.
New Charges Already in Effect
As per ProPakistani, the new fee structure is executed already. Customers are now receiving deductions at the new rates when using non-host ATMs—a term used when the ATM belongs to a bank different from the account holder’s.
Most commercial banks have quietly updated their Schedule of Charges (SOC) to reflect the new rate. Customers only learn about the hike when they check their mini-statements or receive debit alerts.
Who Gets the Money?
This transaction fee isn’t kept entirely by the bank whose ATM was used. In fact, a large portion of the charge goes to 1LINK, the country’s interbank transaction switch, which helps in promoting communication between different banks’ ATMs. The host bank, or the one that owns the ATM, is getting a smaller share of the fee.
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Although the new pricing structure is justified by some as a way to cover rising operational and technology costs, many consumers are feeling blindsided and frustrated by the lack of upfront communication.
Impact on Consumers
The fee hike is proven to be tough on customers in rural and suburban areas, where access to a bank’s own ATM is limited. These users often depend on the nearest available machine—regardless of the bank—and now encounter extra costs just to access their own money.
Daily wage workers, students, and pensioners—many of whom withdraw smaller amounts—are hit the hardest, with fees sometimes which are equal to a sizable percentage of the transaction.
Consumer rights activists and financial experts are calling on the State Bank of Pakistan (SBP) to revisit these fees and guarantee greater transparency in banking practices. Some have suggested capping interbank ATM fees or mandating free transactions up to a certain limit per month to give protection to the low-income users.
Customers are highly advised to check their bank’s official charges and plan their withdrawals sensibly to avoid unnecessary deductions.