Saudi Central Bank’s New Fees Guide: Everything You Need to Know

Saudi Arabia is making strides toward more affordable and transparent banking. The Saudi Central Bank, known as SAMA, has released a comprehensive new fees guide for financial institutions aimed at slashing customer fees and promoting digital solutions.

Overview of SAMA’s New Fees Guide

The updated fees guide will replace the current Banking Tariff and will apply to all banks and payment companies supervised by SAMA. Its official enforcement is set to occur within 60 days from publication, standardizing fees nationwide and ensuring that customers encounter fair and reasonable charges.

SAMA emphasizes that this guide is designed to enhance disclosure and transparency, support financial inclusion, and encourage the broader adoption of digital channels. This is the first guide to cover all financial institutions and represents the third edition specific to banks, reflecting the ongoing modernization of Saudi Arabia’s financial sector.

Lower Fees for Financing Products

A significant update is the reduction in administrative fees for non-real estate finance products like consumer and motor finance leasing:

• Previous cap: 1% of the finance amount or SR5,000, whichever was lower
• New cap: 0.5% or SR2,500, whichever is lower

This adjustment greatly reduces costs for customers seeking personal and vehicle financing.

Reduced Mada Card and Transaction Fees

The guide also implements limits on fees associated with Mada card services, making card usage more cost-effective. Key revisions include:

• Card re-issuance (lost, damaged, or after three incorrect password attempts): Reduced from SR30 to SR10
• International transaction fees: Capped at 2% of the transaction amount
• International cash withdrawals (excluding GCC NET): Capped at 3% of the transaction value, with a maximum of SR25
• Invalid objections to transactions or account statements: Capped at SR15

SAMA clarified that these fees do not cover delivery costs and that customers can collect cards from bank branches without additional charges.

Cheaper Checks and Standing Orders

Several other banking services have seen notable reductions:

• Issuance of a bank check: Reduced from SR10 to SR5
• Copy of a check older than one year: Reduced from SR20 to SR10
• Setting up a standing payment order at a branch: Reduced from SR15 to SR5
• Revocation of a standing payment order: No charge

These changes simplify and lower the cost of everyday banking tasks for customers.

Low-Cost Electronic Transfers

The guide also standardizes fees for domestic electronic transfers through bank accounts and digital wallets:

• Transfers up to SR2,500: SR0.5
• Transfers between SR2,500 and SR20,000: SR1

This standardization encourages the use of digital transfers while lowering cost barriers for small and medium transactions.

Free and Reduced-Cost Account Documents

SAMA has eliminated or reduced charges for various account-related documents:

• First issuance of a debt confirmation or debt transfer certificate: No charge
• Account statements for less than one year: No charge
• Account statements older than one year:
  • SR15 if requested at a branch
  • No charge if requested electronically

This aligns with SAMA’s initiative to make information more accessible and minimize unnecessary fees.

Implementation and Outlook

Financial institutions have 60 days to adapt their systems and disclosures to align with the new guide. The complete guide is available on SAMA’s Rulebook via its official website.

Overall, the revised fee structure reflects SAMA’s commitment to consumer protection, enhanced sector efficiency, and accelerated adoption of digital financial services. These updates bolster confidence in the financial system while making banking more transparent and affordable for everyone.