A few commercial banks have raised the per-transaction cost for cash withdrawals at ATMs from banks other than the account’s host bank from Rs. 18.50 to Rs. 23.44.
Some banks have even begun charging their clients for this service, while others will start doing so in the coming weeks.
Details indicate that commercial banks, including United Bank Limited (UBL), Askari Bank, Bank Al Habib, Meezan Bank, Bank of Punjab (BOP), Telenor Microfinance Bank, and National Bank of Pakistan (NBP), updated their fee schedule and increased the fees for customers of various banks who withdraw cash from their ATMs.
These fees make up a significant portion of 1-Link Switch and a small portion of a bank whose ATM is utilised by clients of other banks.
Major financial institutions including Bank Alfalah, MCB Bank, and Habib Bank Limited did not change the fees for cash withdrawals made through the Link 1 changeover. On the same account, these banks charge between Rs. 18.50 and Rs. 18.75 every transaction.
The government increased the super tax on commercial banks by 10% in order to raise money. On the other hand, operating expenses have continued to rise, mostly as a result of increasing power and transportation costs. Through these fees, the banks are attempting to cover their costs.
Not all banks will necessarily use the same strategy. To prevent any action from the competition watchdog, the majority of banks, however, gradually impose or increase the fees.
1-Link and its 11 member banks received show-cause notices from the Competition Commission of Pakistan (CCP) in 2012 for breaking the legislation on competition. These banks charged Rs. 15 for simultaneous cash withdrawals from an ATM operated by a different bank.
Nearly 80% of these ATMs were put on-site, while 20% were deployed off-site in corporate offices, hospitals, retail centers, etc.
To read our blog on “Meezan Bank adds 1,000 more ATMs to its network,” click here.