The Commonwealth Bank of Australia has been forced to backflip on its decision to charge customers a fee to withdraw cash after copping criticism from its customers.

Australia's biggest bank has paused its plans to charge customers a $3 fee to withdraw their own money at bank branches around the country, a day after it was announced.

We feel we didn’t get the communication right on this, so we’ve paused, and we want to take a different approach.”

Less than 24 hours after an announcement that was met with criticism from politicians, the bank will pause the change for an estimated 100,000 customers for at least six months.

The Commonwealth Bank will “change its approach” after its plan to charge some customers $3 to withdraw cash from a branch sparked national fury.

Some Commonwealth Bank customers who withdraw cash at branches or post offices will soon be charged $3 for the privilege, after the bank announced it was migrating a legacy everyday account to a newer offering.

Commonwealth Bank has backflipped on a move to slug customers a $3 fee to cash out at its branches amid outcry from the top of politics.

Ally Langdon took a CommBank executive to task on Tuesday night over the bank’s controversial decision to charge customers to withdraw their own cash.

The Commonwealth Bank has held off on its plan to introduce a $3 fee for customers who withdraw cash at their branches and post offices. 3AW Drive host Heidi Murphy had her say on the proposed $3 withdrawal fee from the CBA,

Commonwealth Bank of Australia scrapped plans to charge customers a fee to withdraw cash at branches and on the phone within a day of announcing a policy that drew criticism from the government.

The Commonwealth bank says it's 'pausing' changes it announced yesterday, which would see some account holders pay a three-dollar withdrawal fee at branches and post offices.