Banks asked to install cash authentication machines

KARACHI: The State Bank of Pakistan (SBP) on Friday directed all banks to install cash authentication machines (CAMs) at all their branches by December 31, otherwise the financial institutions will face penal action.

A circular issued by the central bank said that from January 2, 2017, the banks could only disburse machine authenticated cash to the public.

“The banks found involved in issuing cash not processed by machines certified by the SBP shall face stern penal action,” the central bank said. From the next year, the banks will issue machine authenticated higher denomination cash from their branches and automated teller machines (ATMs) in 30 districts / cities, it said.

The central bank expressed satisfaction that all the banks had either got their selected machines verified / tested by the SBP or have selected machines already verified by the central bank.  "However, the machines procurement and installation process need to be expedited," the SBP said.

The SBP also directed the banks to ensure installation of such machines or make arrangements with other banks to get their cash processed well before the cutoff date. It directed the banks to submit the information about their cash processing centers (CPC) in 30 big cities along with the branches by December 1, 2016.