SBP directs banks to expand Cash Deposit Machines

September 05, 2025 (MLN): The State Bank of Pakistan (SBP), referring to PSD Circular No. 1 of 2021, has directed banks and MFBs to enhance deployment of Cash Deposit Machines (CDMs), especially at branches with large customer base and high cash demand.

To further promote self-service banking, SBP has decided that banks must increase the number of CDMs to at least 25% of their branch network by CY28, with plans and yearly breakup to be shared with PSP&OD by November 30, 2025.

Banks may use CDMs already enlisted on the SBP website or acquire new models, which, if not enlisted, must be tested and cleared by SBP BSC Karachi as per FD Circular Letter No. 6 of 2023 under the Currency Management Strategy.

Banks are required to give instant credit of funds to the beneficiary’s account, conduct biometric verification for non-customer deposits and use biometric or debit/credit cards for customer deposits, and resolve disputes within 3 working days.

They must also install CCTV cameras and retain recordings for at least 60 days, ensure proper lighting, safety, privacy, and other necessary arrangements for CDM vestibules, and display any applicable fee on the CDM screen before a transaction.

Banks have been asked to acknowledge receipt of these instructions.

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