The State Bank of Pakistan (SBP) has announced a significant push to accelerate digitization and self-service banking by directing all commercial banks to substantially increase the number of Cash Deposit Machines (CDMs) across their branch networks.
In a circular issued through the Payment Systems Policy and Oversight Department (PSP&OD), the central bank instructed banks to ensure that CDMs are installed in at least 25% of their branches nationwide by 2028. Banks have been asked to prepare comprehensive plans with yearly targets and submit them to the PSP&OD by November 30, 2025.
The directive is part of SBP’s broader digital banking agenda, aimed at reducing reliance on manual transactions, facilitating round-the-clock services, and enhancing customer convenience in both urban and rural areas. The central bank emphasized that CDMs will play a critical role in extending self-service channels for customers while ensuring security and transparency in banking operations.
SBP had previously, in 2021, recommended the deployment of interoperable CDMs at selected branches with high customer footfall and cash demand. However, progress has been modest. According to the Payment Systems Quarterly Review for the third quarter of FY2024-25, only 13 banks had deployed a total of 863 CDMs and Cash and Cheque Deposit Machines (CCDMs) across the country by the end of March 2025.
To address the slow rollout, SBP has now mandated an accelerated expansion plan. The regulator has also set out operational requirements that banks must meet. These include instant credit of deposited funds to beneficiary accounts, biometric verification or card authentication for self-deposit transactions, and mandatory biometric checks for third-party deposits. Banks are required to maintain transaction records in compliance with existing laws.
To strengthen customer protection, SBP has directed that all disputes related to CDM transactions be resolved within three working days of lodgement. Furthermore, banks must install CCTV cameras to monitor activities within CDM areas, retain footage for at least 60 days, and preserve recordings until disputes are resolved.
Customer safety and privacy have also been highlighted as priority areas. Banks are instructed to ensure proper lighting, safety measures, and privacy screens in CDM vestibules. Additionally, any service fee applied to CDM transactions must be clearly displayed on the machine screen before the customer confirms the transaction.
The central bank also underscored the need for banks to establish customer-friendly dispute resolution mechanisms and transparent complaint handling to build trust in digital banking channels. By mandating higher adoption of CDMs, SBP aims to reduce dependence on branch-based transactions while expanding digital payment infrastructure across Pakistan.
This initiative, if effectively implemented, is expected to transform banking accessibility by providing customers with reliable, secure, and 24/7 self-service deposit options. It also aligns with the government’s broader vision of financial inclusion and digital transformation of the economy.
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