ISLAMABAD – The Senate Standing Committee on Finance and Revenue has strongly criticized commercial banks for generating significant profits through SMS alert fees and other basic services.
During a session led by Senator Saleem Mandviwalla, the committee labeled the practice as exploitative and urged the State Bank of Pakistan (SBP) to intervene immediately.
The committee pointed out that essential transaction notifications, which are meant to keep account holders informed, are being monetized without customers’ informed consent.
“Banks must not turn basic alert services into optional revenue sources,” Senator Mandviwalla emphasized, noting that many customers are unaware they are being charged.
Meezan Bank faced particular scrutiny, with multiple customers taking to social media and forums to report being charged for SMS services they neither requested nor received.
One complaint highlighted a Rs 1,800 charge for a service the customer didn’t use, while another claimed Rs 2,000 was deducted from multiple accounts under the heading “SMS Charges.”
SBP Governor clarified that banks can charge for optional services, but mandatory alerts should remain free. While acknowledging that some banks raised fees due to increased telecom costs, he warned that any unnotified charges could lead to regulatory actions.
The committee, however, urged the SBP to review how banks report SMS-related revenue and collaborate with telecom providers to verify the authenticity of these charges.
