KARACHI (June 28 2003) : The State Bank has allowed banks to install off-site ATMs for dispensation of cash only.
The SBP has already allowed deposit and collection of cheques and cash through Automated Teller Machines (ATMs).
“While the banks are free to install ATMs within branch (on-site) premises for deposit of cash and cheque and withdrawal of cash, they are also allowed to install off-site ATMs for dispensation of cash only,” said a circular issued by the SBP on Friday.
Each banking company in this regard will only submit a quarterly statement regarding installation of ATMs, within seven days from the end of each quarter, to Banking Policy Department.
However, for the purpose of extending the facility of deposit of cash and cheques in off-site ATMs, banks are required to obtain prior permission in writing from SBP in terms of the provisions of Banking Companies Ordinance, 1962.
The SBP will endeavour to give permission within three working days from the date of receipt of such request from the banks, said the circular.
Before extending the facility of cash and cheque deposits through ATMs to the customers, banks must develop and put in place a well-defined procedure, including resolution of disputes in this regard, and forward a copy of this to SBP.
Banks may add more in the suggestions given by the SBP regarding the process for cash and cheque deposits in the ATMs and its ultimate credit to the customer's account.
“Banks will ensure proper security at off-site ATMs to avoid any incidents of snatching, robbery, dacoity etc,” said the circular.