Karachi, September 4, 2025 – The State Bank of Pakistan (SBP) has introduced new benchmarks for the deployment of cash deposit machines (CDMs) as part of its ongoing efforts to accelerate digitization in the country’s banking sector.
The initiative is aimed at enhancing convenience for customers while reducing pressure on conventional counters in high-footfall branches.
According to a circular issued on Thursday, the SBP referred to its earlier PSD Circular No. 1 of 2021, which had encouraged banks and microfinance banks (MFBs) to deploy CDMs in areas with heavy cash transactions and high customer demand. Building upon that directive, the central bank has now made it mandatory for all banks to increase the number of CDMs to at least 25 percent of their branch network by the calendar year 2028. Each bank is required to submit its implementation plan, along with a yearly rollout schedule, to the Payment Systems Policy & Oversight Department (PSP&OD) by November 30, 2025.
The SBP has further clarified that banks may either use Cash Deposit/Recycling Machines already listed on its website or procure alternative models. However, any new machines not pre-approved must undergo testing and clearance through the SBP Banking Services Corporation (BSC) Office in Karachi, as outlined under the SBP Currency Management Strategy.
To ensure smooth operations, banks must meet several conditions. These include instant credit of funds into beneficiaries’ accounts once the cash is deposited, biometric verification for third-party deposit transactions, and resolution of disputes related to CDM usage within three working days. For customers depositing their own cash, verification may be done through biometric authentication or debit/credit cards.
Moreover, banks are required to install CCTV surveillance, maintain recordings for at least 60 days, and extend the retention period in case of disputes. Adequate lighting, customer safety measures, and privacy protocols for CDM areas are also mandated.
The SBP emphasized that transparency is crucial; therefore, any service fee charged by banks must be clearly displayed on the CDM screen before a cash deposit transaction is executed. This move is expected to modernize banking operations, promote self-service channels, and reduce reliance on manual cash counters in the coming years.