KARACHI: In a major step towards digital banking, the State Bank of Pakistan (SBP) has directed banks and microfinance banks (MFBs) to ensure that at least 25 percent of their branch networks are equipped with Cash Deposit Machines (CDMs) by calendar year 2028. The directive is part of SBP’s broader strategy to accelerate self-service banking and promote digitization.
According to the central bank, CDMs should be deployed particularly at branches with high customer footfall and in areas with significant cash demand. Banks have been advised to submit their implementation plans to SBP by November 30, 2025.
As per SBP guidelines, banks may either choose CDMs already enlisted on the SBP website or acquire new models, provided the latter are tested and cleared by the SBP Banking Services Corporation (BSC) Office in Karachi under the Currency Management Strategy.
To ensure smooth operations, SBP has mandated that banks provide instant credit of funds to beneficiaries against cash deposits. Biometric verification will be required for cash deposits made by third parties, while customers depositing cash themselves may use either biometric verification or debit/credit cards.
Banks will also be responsible for resolving CDM-related disputes within three working days of a complaint being lodged. Any fees charged for transactions must be displayed clearly on the CDM screen before the transaction is processed.
For security and customer safety, SBP has directed banks to install CCTV cameras at CDM sites, retaining recordings for at least 60 days or until disputes are resolved. Banks must also ensure proper lighting, privacy, and other safety measures within CDM vestibules.
The move is expected to significantly expand self-service banking across Pakistan, reduce reliance on manual cash handling, and improve customer convenience as the country pushes towards greater financial digitization.
