The State Bank of Pakistan (SBP) has instructed banks to ensure that at least 25% of their branch network is equipped with Cash Deposit Machines (CDMs) by calendar year 2028.
The move is part of the central bank’s broader plan to promote self-service banking and accelerate digitization.
Banks and Microfinance Banks (MFBs) have been asked to prioritise deployment of CDMs at branches with high customer traffic and in areas with significant cash demand. Institutions are required to submit their implementation plans to the SBP by November 30, 2025.
Banks may install cash deposit or recycling machines listed on the SBP website, or acquire new models. Any new machine not on the approved list must be tested and cleared by the SBP Banking Services Corporation (BSC) Office in Karachi, in line with the central bank’s Currency Management Strategy.
Under the SBP guidelines, banks must provide instant credit to the beneficiary’s account for funds deposited through CDMs. Cash deposits by non-account holders require biometric verification, and records of such transactions must be maintained in accordance with applicable regulations. For deposits made by account holders, either biometric verification or debit/credit cards can be used.
Banks are required to resolve customer disputes related to CDM transactions within three working days of lodgment. Any fees charged for CDM use must be clearly displayed on the machine before transactions are completed.
To ensure security and transparency, the SBP has directed banks to install CCTV cameras covering CDM areas, retaining recordings for a minimum of 60 days or until disputes are resolved. Additional requirements include proper lighting, customer safety, privacy, and other operational arrangements for CDM vestibules.
