Pakistani Banks Increase Inter-Bank ATM Withdrawal Fee to Rs 35
Starting August 2025, banks charge Rs 35 per withdrawal from other bank ATM. Rs 28 goes to the ATM owning bank & 7 to 1LINK. Want to know why?
Pakistani banks have notified customers via email and in-app alerts that withdrawing cash from other banks ATMs will now cost Rs 35 per transaction. The increase will take effect from 1st August 2025, as per notifications received by users from banks in Pakistan.
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Previous Other Bank ATM Withdrawal Fee
- Previous fee: Rs 23.44 per non-host ATM withdrawal
- New fee: Rs 35 (effective from 1st August 2025)
Banks say this is due to revised 1LINK interbank fee structure, and change is clearly outlined in their updated fee schedules.
What is 1Link?
1LINK is Pakistan largest interbank ATM and payment network. It was set up in 1999. It helps enables real time Inter Bank Funds Transfer (IBFT), shared via ATM services and POST Terminals, and powers domestic debit schemes like PayPak
Read How to Block ATM Card in Pakistan
Why Banks Charge Extra Fee on Other Banks ATM Withdrawal
- ATM-owning bank receives Rs 28, this covers upkeep, cash management, and operational costs.
- 1LINK, which is interbank ATM switch, gets Rs 7 per non host transaction for its service and network.
1LINK connects over 14,000 ATMs across 37 member banks in Pakistan, it is mandated by the State Bank of Pakistan to ensure easy and quick interbank access throughout Pakistan.
What It Means for ATM Card Users in Pakistan
Try to use own bank’s ATM for no extra charges. Using another bank’s ATM will charge extra Rs 35 each time. Frequent withdrawals will make noticeable costs, especially for smaller transactions.
Pakistani Public Take on this Increase
Banking experts say due to rising operational costs and network management, this hike was important to keep providing seamless services. But criticism is growing, as citizens use non-host ATMs in rural or underserved areas, where own bank ATM are not available and withdrawing is difficult. Some describe this as a "hidden tax on cash," on wage earners and low-income individuals.
Read How to Enable and Use Bank Alfalah Tap to Pay
How to Avoid Inter Bank ATM Withdrawal Fee
- Always withdraw from own bank ATM.
- Use digital wallets, mobile banking, or POS to avoid cash charges.
- Track ATM usage limits, some banks allow limited fee free interbank withdrawals per month.
Banks That offer Free interbank ATM Withdrawals per Month
Most banks in Pakistan offer limited free ATM withdrawals from non host ATMs each month. The free limit varies by bank.
| Bank | Free Interbank ATM Withdrawals/Month |
|---|---|
| HBL | 3 to 5 |
| UBL | 3 |
| Bank Alfalah | 3 to 5 |
| Meezan Bank | 3 |
| Easypaisa Debit Card | 1 |
| SadaPay | 3 Free Withdrawals from Any ATM |
| JazzCash Mastercard | 0 (Charges apply per withdrawal) |
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Quick FAQs
Will this Rs 35 fee apply to purchases made through POS (Card Swiping in stores)?
Does Digital Wallet charge Rs 35 for ATM withdrawals?
Will I be charged Rs 35 for balance inquiry or mini statement?
Can I avoid interbank fee?
Disclaimer: This article is for informational purposes only. We are not affiliated with anyone mentioned above and their partners..
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