2 min read
The State Bank of Pakistan (SBP) has ordered all banks and microfinance banks (MFBs) to ensure that at least 25 percent of their branch network is fitted with cash deposit machines (CDMs) by calendar year 2028. The move is part of a wider push to accelerate self service banking, reduce teller queues and strengthen cash management across the country.
The SBP has asked banks to prepare and submit detailed rollout plans to the central bank by November 30th 2025. Banks may deploy cash deposit or recycling machines already listed on the SBP website. If a bank selects a new machine model that is not on the list, the device must be tested and cleared by the SBP Banking Services Corporation Office Karachi in line with the SBP currency management strategy.
Operational rules are strict. Funds deposited through a CDM must be credited to the beneficiary account instantly. Banks must use biometric verification for deposits made by persons other than the account holder. For customer deposits the bank may use biometric verification or debit and credit cards. Any fee charged for using a CDM must be shown on the machine screen before the transaction proceeds.
The safety of customers and resolution of disputes are required. Banks are required to install CCTV cameras to ensure that they capture the action in and around each CDM vestibule. Recordings must be retained for at least sixty days and kept until any related dispute is resolved. Complaints about CDM transactions must be addressed within three working days of lodgment. Banks must ensure adequate lighting privacy and safety at all CDM locations.
The SBP also encouraged banks to prioritise branches with high cash demand when planning deployments. Institutions should include arrangements for audit reconciliation warehousing and legal support in their cash flow plans. The central bank will monitor progress and may publish compliance updates.
This directive will increase the use of digital cash services whilst maintaining consumer protection and transparency in operation. Banks have been advised to ensure that they meet the deadline of submitting plans and as well as initiating a gradual rollout that achieves the 25 percent target by CY28.
