Pakistani Banks face Senate grilling over Exploitation of Customers through SMS Charges

2026-02-05 - 17:26

KARACHI – Charging customers for SMS alerts has long been common practice among Pakistani banks, but Senate has now slammed banks, calling it exploitative and demanding urgent regulatory action. Senate Standing Committee on Finance and Revenue condemned commercial banks for raking in “hundreds of millions of rupees” from customers through SMS alert fees and other routine services. Chaired by Senator Saleem Mandviwalla, the panel called the practice exploitative and demanded immediate action from the State Bank of Pakistan (SBP). Lawmakers warned that essential transaction notifications—intended to keep account holders informed—are being treated as profit-generating services, often without customers’ informed consent. “Banks must not treat basic alerts as optional revenue streams,” Senator Mandviwalla said, highlighting that countless customers remain unaware they are being billed. Meezan Bank came under sharp scrutiny, facing a wave of complaints on social media and consumer forums. Customers alleged they were charged for SMS alert services they never requested or received. One widely circulated complaint reported a customer being billed Rs 1,800, despite relying on the bank’s mobile app for real-time notifications, while another claimed Rs 2,000 was deducted from multiple accounts under “SMS Charges”, far above previous fees. State Bank Governor said banks are allowed to charge for voluntary services with consent, and mandatory alerts are not billed. He noted that some banks raised fees due to higher telecom costs but warned that charging customers without proper notice could trigger regulatory action. The committee, however, remained unconvinced and directed the SBP to scrutinize how banks record SMS-related revenue in their financial statements. Members suggested regulators may even liaise with telecom companies to verify the legitimacy of these charges. Panel stressed that customer protection must take precedence over profits and urged the central bank to enforce transparent and fair practices across the banking sector. Banks to remain closed THIS DAY across Pakistan