SBP For Increasing CDMs In Bank Branches To Promote Digitization, Self Service Banking

In order to give a boost to digitization initiatives in the financial sector and promote self service banking, the State Bank of Pakistan (SBP) decided to increase the number of cash deposit machines (CDMs) in bank branches across the country

KARACHI, (UrduPoint / Pakistan Point News - 5th Sep, 2025) In order to give a boost to digitization initiatives in the financial sector and promote self service banking, the State Bank of Pakistan (SBP) decided to increase the number of cash deposit machines (CDMs) in bank branches across the country.

The central bank, through a Payment Systems Policy and Oversight Department (PSP&OD) Circular Letter Friday, instructed all commercial banks to develop their respective plans to increase the number of CDMs to at least 25% of their branches by the year 2028 and also take other necessary measures for customer facilitation, security and transparency.

The banking regulator, in the year 2021, suggested all the commercial and micro finance banks to consider deployment of Interoperable Cash Deposit Machines (CDMs) at selected locations especially at branches with a large number of the customers and areas with high-cash demand in order to move towards self-service banking channels and allow round the clock banking solutions to customers and businesses.

According to the Payment Systems Quarterly Review for the 3rd quarter of Fiscal Year 2024-25, only 13 banks had installed 863 Cash Deposit Machine (CDMs) and Cash and Cheque Deposit Machines (CCDMs) at their selected branches around the country up to end March 2025.

Now to further strengthen the digitization measures, SBP has decided to increase the number of CDMs and all the banks are directed to develop a plan in this regard and share the same with PSP&OD along with yearly breakup by 30th November 2025.

The central bank further instructed the banks to meet the necessary operational requirements including instant credit of funds to the beneficiary’s account against the cash deposited in the CDM, setting up customer dispute resolution mechanism and ensuring proper lighting, customer safety, privacy, and other necessary arrangements for the CDM vestibules.

For cash deposit transactions made by customers themselves, either the bio-metric verification or debit/credit card could be used while the banks shall conduct bio-metric verification for cash deposit transactions by persons other than customers, and retain the record of such transactions in accordance with the applicable laws and regulations.

The banks are also directed to resolve customers disputes related to CDM transactions within 3 working days from the date of lodgement of the dispute and install CCTV cameras to monitor and record activities within the CDM vicinity and shall retain these recordings for a minimum period of 60 days while in case of disputes, the banks shall retain recordings until the time dispute is resolved.

The SBP further asked the banks to ensure that any fee being charged by the bank shall be displayed on the CDM screen before the transaction is performed.