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Commercial banks in Pakistan have officially increased per-transaction fees for cash withdrawals conducted at ATMs of banks other than the customer’s own — known as non-host ATMs. The previous charge of Rs. 23.44 has been raised to Rs. 35 per transaction, a move that has already taken effect, as verified by financial watchdogs and industry sources.This increase marks a significant shift in the cost of accessing personal cash and has raised questions about the affordability of digital banking services for everyday users.
What Are Non-Host ATM Withdrawals?
Non-host ATM transactions refer to cash withdrawals made by a customer at an ATM operated by a bank other than the one where they maintain their account. While this interbank access has allowed widespread convenience, it comes at a cost — one that has just become steeper.
For example, if a customer of Bank A uses an ATM of Bank B, they are now charged Rs. 35 per withdrawal, up from the earlier Rs. 23.44.
Nationwide Implementation by All Banks
Reports indicate that all major commercial banks have already updated their official Schedules of Charges (SoC) to reflect the new rates. Customers using ATMs of banks other than their own are now automatically charged Rs. 35 per transaction — regardless of the withdrawal amount.
These charges are automatically deducted at the time of the transaction and reflected in digital receipts, SMS alerts, or bank statements.
Who Gets What: 1-Link vs. ATM Owner Bank
The per-transaction fee is not entirely retained by the bank that owns the ATM. A significant share goes to 1-Link, Pakistan’s interbank connectivity and payment platform, which facilitates communication between banks during these cross-network ATM transactions.
Only a small portion of the Rs. 35 goes to the actual ATM-owning bank as service compensation. However, customers are still left paying the full charge, which adds up quickly for those who make frequent cash withdrawals outside of their own bank’s network.
Impact on Consumers
The hike in ATM charges is a financial setback for low-income customers, daily wage earners, and rural users who often rely on the nearest ATM regardless of bank affiliation. Many consumers have voiced concern that banks are unfairly capitalizing on a basic financial need: access to one’s own money.
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Since cash is still a major mode of transaction in Pakistan, the move is expected to discourage interbank ATM use and may even lead customers to withdraw larger sums less frequently, increasing their risk of carrying more cash.
Transparency and Notification Concerns
Customers have also reported that there was little to no notification regarding the updated charges. In many cases, users only discovered the increased fee after completing a transaction. This lack of transparency has further damaged trust between consumers and the banking sector.
Regulatory Oversight: Where Is SBP?
The State Bank of Pakistan (SBP), which regulates banking practices and approves such fee structures, has not yet released an official public statement regarding the rationale or consumer protection associated with the latest fee increase.
Banking experts argue that the central bank should intervene to cap ATM charges, especially considering the already rising cost of living in the country.
Calls for Reform and Consumer Protection
Consumer rights advocates have urged for greater clarity, fair pricing, and accountability in bank service charges. They argue that digital financial inclusion should not be undermined by high transaction costs, especially when banks are posting record profits.
Until regulations are reviewed, customers are advised to:
Lodge complaints with their bank or SBP if they feel overcharged.
Use host bank ATMs whenever possible to avoid extra charges.
Withdraw larger sums in a single transaction (where safe and practical).
Track all transactions closely via SMS/email alerts or banking apps.
