Rising Bank Charges Spark Customer Concerns
Customers nationwide are expressing concern as banking costs rise due to new government tax measures combined with additional service charges imposed by banks.
Under the updated regulations, non-filers are required to pay a 0.8 percent withholding tax on every bank withdrawal they make.
Simultaneously, banks have increased charges for ATM cards, SMS notification services, and interbank ATM usage, adding further financial burden on customers.
The State Bank clarified that the revised interbank ATM fee structure was introduced by 1Link, which operates the shared ATM network across Pakistan.
Using another bank’s ATM now results in higher transaction charges, meaning a withdrawal of Rs50,000 may cost approximately Rs80 in additional fees.
ATM card issuance and renewal charges have risen by nearly Rs700, while the annual SMS alert fee has increased from Rs1,200 to Rs2,000.
Non-filers withdrawing cash over the counter are also taxed, with a Rs20,000 withdrawal potentially resulting in more than Rs500 being deducted.
Banks have introduced new withdrawal limits, allowing standard debit card users to withdraw between Rs25,000 and Rs50,000 per day depending on their card category.
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Premium debit card holders can withdraw up to Rs500,000 daily, while foreign debit card users face limits ranging between $200 and $500.
Every withdrawal exceeding Rs50,000 in a single day automatically triggers tax deductions under the revised banking regulations.
International ATM withdrawals now incur either fixed service charges or percentage-based deductions, depending on each bank’s specific policy.
The combined rise in taxes and service charges has intensified disputes between customers and bank staff across branches nationwide.
| Category | Previous Cost / Policy | Revised Cost / Policy | Impact on Customer |
|---|---|---|---|
| Withholding Tax (Non-Filers) | Lower rate or limited scope | 0.8% on bank withdrawals | Higher cost on routine cash handling |
| ATM Use (Other Bank) | Standard interbank fee | Increased fee set by 1Link | Rs50,000 withdrawal may cost ~Rs80 |
| ATM Card Issuance/Renewal | +/– Rs700 lower previously | Increased by ~Rs700 | Higher annual banking expenses |
| SMS Alert Service | Rs1,200 yearly | Rs2,000 yearly | Additional mandatory service cost |
| Counter Withdrawal Tax (Non-Filers) | Lower deduction earlier | Rs20,000 withdrawal may deduct ~Rs500+ | Cash withdrawals become costlier |
| Daily Withdrawal Limits | Varied widely | Standard: 25k–50k, Premium: up to 500k | Limits affect accessibility to funds |
| International ATM Withdrawal | Flat charges mostly | Percentage or fixed charges (bank-specific) | Higher cost for overseas withdrawals |
