Karachi, September 2025 – The State Bank of Pakistan (SBP) has issued a new directive requiring commercial banks to expand their self-service infrastructure by deploying Cash Deposit Machines (CDMs) across at least 25 percent of their branch network by the end of 2028. The initiative is designed to encourage self-banking, improve financial inclusion, and bring Pakistan’s banking sector closer to global digital standards.
Under the instructions, banks must submit detailed implementation plans to the SBP by November 30, 2025, outlining how they will scale up their CDM networks over the next three years. Currently, SBP data shows that just 863 CDMs are operational across selected branches, with several banks yet to introduce a single machine. Considering that commercial and microfinance banks collectively operate more than 19,000 branches across the country, the new mandate is expected to increase the number of CDMs to approximately 5,000 by 2028.
The SBP’s move reflects an effort to reduce reliance on traditional counter services and shift toward a self-service model that benefits customers with greater convenience and efficiency. Cash Deposit Machines allow customers to directly deposit funds into their bank accounts without interacting with branch staff, providing instant credit against deposits. Beyond enhancing convenience, CDMs are also expected to reduce queues at branches and improve operational efficiency for banks.
To ensure smooth operations, the central bank has also laid out mandatory features that CDMs must provide. These include instant account credit for deposited cash, biometric verification for deposits made by non-customers, and flexible authentication methods such as biometric or debit/credit card usage for customer-led transactions. Banks will be required to resolve disputes related to CDM transactions within three working days and ensure surveillance systems, including CCTV cameras, are installed at CDM sites. Recordings will need to be retained for at least 60 days, or longer in case of disputes.
The directive further highlights the importance of customer safety and privacy. Banks must maintain proper lighting, security arrangements, and user-friendly environments at CDM locations. Any service charges related to CDM usage must be transparently displayed on the screen before a transaction is completed, ensuring clarity for customers.
To support the deployment, banks may choose from CDM and recycling machines already listed on the SBP’s website. However, if they opt for new models not yet cleared by the regulator, the machines must undergo testing and approval from the SBP Banking Services Corporation (BSC) Office in Karachi before deployment.
Industry observers view this directive as a pivotal step in modernizing Pakistan’s financial infrastructure. With global trends pushing toward greater automation and digitalization, Pakistan’s banking system has often lagged in terms of self-banking services. By mandating wider deployment of CDMs, the SBP is signaling its commitment to bringing customer convenience, operational efficiency, and security into sharper focus within the local financial ecosystem.
The move is expected to particularly benefit customers in urban centers where branch congestion is frequent, as well as in semi-urban areas where extended banking hours are often unavailable. By promoting CDMs, the regulator hopes to strike a balance between traditional banking services and digital convenience, paving the way for a more customer-centric approach in the years ahead.
Follow the PakBanker Whatsapp Channel for updated across Pakistan’s banking ecosystem.