SBP directives: Banks to add one ATM with every new branch

KARACHI:

The State Bank of Pakistan (SBP) has made it mandatory for all banks operating in the country to add at least one Automated Teller Machine (ATM) to their network while opening a new branch from next year.

“This directive has been issued with a view to improving the coverage of ATMs and to meet minimum international standards,” said the SBP in a circular issued to all banks on Thursday.

SBP stressed that banks having less than one ATM per branch would cover the gap in five years starting 2013 at the rate of 20% each year. For this purpose, all banks will submit a five-year plan to the central bank by November 30. Progress in this regard will be reported to the SBP on a quarterly basis.

SBP warned that banks who failed to comply would be ineligible for future branch expansion and possibly face penal action.

Published in The Express Tribune, October 5^th, 2012.