Islamabad: Mudassar Iqbal/Web Desk – The issue of commercial banks charging up to Rs4 per SMS alert has intensified after revelations that the banking sector is earning billions of rupees annually from this service, prompting strong reaction in the Senate Standing Committee on Finance.
According to estimates discussed in policy circles, Pakistani banks collectively generate over Rs15–20 billion annually from SMS alert charges alone. These earnings come from millions of account holders who receive transaction alerts on a daily basis, with each message costing customers several rupees despite having a minimal actual delivery cost.
The matter was formally raised in the Senate committee, where lawmakers questioned the fairness of charging customers Rs3 to Rs5 per SMS. Committee members highlighted that while a single message costs only a few paisas, banks have turned it into a significant revenue stream, placing an additional burden on the public.
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Responding to the concerns, officials from the State Bank of Pakistan and commercial banks defended the charges, stating that the cost is not limited to sending a text message. They argued that SMS alerts are part of a broader secure banking infrastructure, which includes IT systems, data security, servers, and 24/7 monitoring.
Banking representatives also pointed out that institutions pay telecom companies for bulk messaging services and maintain sophisticated alert systems to ensure real-time updates and fraud prevention. These operational costs, they said, justify the charges imposed on customers.
However, the Senate committee expressed dissatisfaction with the explanation, stating that the charges appear excessive, particularly when compared to the actual cost of SMS delivery. Lawmakers emphasized that essential banking services should be affordable and transparent, especially for low-income customers.
The committee directed the State Bank of Pakistan to conduct a detailed review of SMS charges and submit a report. It also called for greater transparency in banking fee structures and suggested that banks should provide free or low-cost alternatives such as mobile app notifications and email alerts.
Committee members further indicated that if the charges are found to be unjustified, regulatory action could be taken, including reducing or eliminating these fees to provide relief to consumers.
The issue has sparked a wider debate on hidden banking charges and consumer rights in Pakistan. Experts believe that while banks need to recover operational costs, generating billions from basic notification services raises questions about fairness and regulatory oversight.
For now, the matter remains under review, but with parliamentary attention and public pressure mounting, there is growing expectation that changes may be introduced to make banking services more customer-friendly
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