Members of the Senate Standing Committee on Finance on Monday grilled banking and telecom officials on why their customers were paying Rs. 300 per month for SMS banking alerts.
Senators were briefed that fees had increased from 42 paisas per message in 2021 to Rs. 3.40 per message in 2025, up 800 percent in four years. This way, customers typically receive three transaction alerts per day, amounting to nearly Rs. 300 per month.
Telecom and banking officials explained that these high charges cover the cost of sending secure messages.
The Deputy Governor of the State Bank, Inayat Hussain, revealed that banks collect Rs. 18.7 billion annually from consumers for SMS services, while paying Rs. 25.6 billion to telecom companies.
He said that bulk SMS packages purchased by banks are far cheaper than what is charged to customers, highlighting a significant markup.
While digital banking apps offer free notifications, SMS alerts remain essential for many users, especially for online banking transactions. Lawmakers warned that the escalating fees are unsustainable and called for a comprehensive review of telecom and banking fee structures.
Committee members have requested one-year data on SMS charges from all banks and telecom providers to assess the costs and propose solutions to reduce the burden on consumers.