SBP Orders Banks to Install Cash Deposit Machines in 25% of Branches

The State Bank of Pakistan (SBP) has instructed all banks and microfinance banks (MFBs) to ensure that at least 25 percent of their branch network is equipped with cash deposit machines (CDMs) by the calendar year 2028. The move forms part of a broader strategy to promote self-service banking, reduce teller queues, and strengthen cash management across the country.

Under the directive, banks are required to submit detailed CDM rollout plans to the SBP by November 30, 2025. Institutions may deploy cash deposit or recycling machines currently listed on the SBP website. Banks opting for new machine models not on the approved list must have the devices tested and cleared by the SBP Banking Services Corporation Office in Karachi, in accordance with the SBP currency management strategy.

Operational rules for CDMs are stringent. Funds deposited through these machines must be credited to the beneficiary account instantly. Biometric verification is mandatory for deposits made by individuals other than the account holder. For customer deposits, banks may use either biometric verification or debit/credit cards. Any fees for CDM use must be displayed on the machine screen before the transaction proceeds.

Customer safety and dispute resolution are also emphasized. Banks must install CCTV cameras to monitor activity in and around each CDM vestibule, retain recordings for at least 60 days, and maintain them until any related dispute is resolved. Complaints regarding CDM transactions must be addressed within three working days. Banks are also required to ensure adequate lighting, privacy, and safety at all CDM locations.

The SBP advised banks to prioritize branches with high cash demand when planning CDM deployments. Institutions should also incorporate arrangements for audit reconciliation, warehousing, and legal support into their cash flow plans. The central bank will monitor progress and may publish compliance updates.

The directive aims to boost digital cash services while maintaining consumer protection and operational transparency. Banks have been urged to submit their plans on time and initiate a gradual rollout to achieve the 25 percent target by 2028.

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