SBP tells banks: Equip 25% branch network with Cash Deposit Machines by 2028

KARACHI: In a major push towards digital banking, the State Bank of Pakistan (SBP) has directed banks to ensure that at least 25 percent of their branch network is equipped with Cash Deposit Machines (CDMs) by calendar year 2028, as part of its broader strategy to accelerate self-service banking and enhance digitization initiatives.

The SBP is encouraging the Banks and Microfinance Banks (MFBs) for deployment of CDMs especially at branches with large number of the customers and areas with high-cash demand.

Now, in order to further promote self-service banking and enhance the CDMs, now the SBP has decided to increase the number of CDMs to 25 percent of the branch network of banks by CY28.

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SBP has advised the banks to accordingly develop their respective plans to increase the number of CDMs to at least 25 percent of their branches by CY28 and share the same with SBP by 30th November 2025.

Banks may opt the cash deposit or recycling machines enlisted on SBP website as CDM, or may acquire new or other models. In case of selection of new machine(s) not enlisted on the SBP website, the banks must get the machine(s) tested and cleared by the SBP Banking Services Corporation (BSC) Office Karachi as required under the SBP Currency Management Strategy.

Further, to meet the necessary operational requirements, the banks shall give instant credit of funds to the beneficiary’s account against the cash deposited in the CDM.

Banks must also conduct biometric verification for cash deposit transactions by persons other than customers, and retain the record of such transactions in accordance with the applicable laws & regulations. For cash deposit transactions made by customers themselves, either the biometric verification or debit/credit card can be used.

Banks will also require resolving customers disputes related to CDM transactions within 3 working days from the date of lodgment of the dispute. While, any fee being charged by the bank shall be displayed on CDM screen before the transaction is performed.

The SBP has directed the banks to install CCTV cameras to monitor and record activities within the CDM vicinity and shall retain these recordings for a minimum period of 60 days. In case of disputes, the banks shall retain recordings until the time dispute is resolved.

In addition, banks must ensure proper lighting, customer safety, privacy, and other necessary arrangements for the CDM vestibules.

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