Regulatory Alerts2025-09-04 | PSP&OD Circular Letter No 01 of 2025Added · Updated
Enhancing Digitization Initiatives in Banks
Commercial banks must increase Cash Deposit Machines (CDMs) to at least 25% of their branch network by the end of 2028 and submit detailed implementation plans to the SBP by November 30, 2025. Banks are required to provide instant credit for cash deposits, conduct biometric verification for non-customer transactions, and resolve customer disputes within three working days. Additionally, institutions must install CCTV cameras with 60-day recording retention, ensure vestibule safety, and display any applicable fees on the CDM screen before transactions.
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PSP&OD Circular Letter No 01
Enhancing Digitization Initiatives in Banks
September 04, 2025
570
The Presidents/Chief Executives,
All Commercial Banks
Dear Sir/Madam,
Enhancing Digitization Initiatives in Banks
The Federal Government, under the Prime Minister’s Cashless Economy initiative, has approved the targeted support for the SBP Regulated Entities (REs) for promoting onboarding of merchants on Raast and enabling them to digitally receive payments through Raast QR Code
To further promote self-service banking, it has been decided to increase the number of CDMs to 25% of the branch network of banks by CY28. The banks shall accordingly develop their respective plans to increase the number of CDMs to at least 25% of their branches by CY28 and share the same with PSP&OD along with yearly breakup at PSDOversight@sbp.org.pk by 30th November 2025.
The banks may opt the Cash Deposit/Recycling Machines enlisted on SBP website as CDM, or may acquire new/other models. In case of selection of new machine(s) not enlisted on the SBP website, the banks must get the machine(s) tested and cleared by the SBP Banking Services Corporation (BSC) Office Karachi as required under SBP FD Circular Letter No. 6 of 2023, under the SBP Currency Management Strategy
Further, to meet the necessary operational requirements, the banks shall:
Give instant credit of funds to the beneficiary’s account against the cash deposited in the CDM.
Conduct biometric verification for cash deposit transactions by persons other than customers, and retain the record of such transactions in accordance with the applicable laws & regulations. For cash deposit transactions made by customers themselves, either the biometric verification or debit/credit card can be used.
Resolve customers disputes related to CDM transactions within 3 working days from the date of lodgment of the dispute.
Install CCTV cameras to monitor and record activities within the CDM vicinity and shall retain these recordings for a minimum period of 60 days. In case of disputes, the banks shall retain recordings until the time dispute is resolved.
Ensure proper lighting, customer safety, privacy, and other necessary arrangements for the CDM vestibules.
Any fee being charged by the bank shall be displayed on CDM screen before the transaction is performed.
Kindly acknowledge receipt.
Yours sincerely,
Qazi Shoaib Ahmad Director
Home — Circulars — PSP&OD Circular Letter No 01
Enhancing Digitization Initiatives in Banks
September 04, 2025