Saudi Arabia Substantially Lowers Banking Fees: A Thorough Guide for Consumers
The Saudi Central Bank (SAMA) has recently unveiled a comprehensive guide to banking fees, marking a meaningful win for consumers adn a push towards a more obvious and affordable financial landscape. These changes, designed to protect your interests and encourage digital adoption, impact everything from everyday card transactions to essential banking documents. HereS a detailed breakdown of what you need to know.
Why the Change?
SAMA’s initiative reflects a commitment to bolstering consumer confidence, enhancing sector efficiency, and accelerating the Kingdom’s transition to a digital economy. Ultimately,these adjustments aim to make banking more accessible and straightforward for everyone.
Reduced Card & Transaction Fees: More Savings in Your Pocket
One of the most impactful changes centers around debit (Mada) card services. SAMA has implemented clear limits, making card usage more predictable and affordable.Here’s how:
* Card Re-issuance: The fee for replacing a lost,damaged,or compromised card (after three incorrect PIN attempts) has been slashed from SR30 to just SR10.
* International Transaction Fees: When you use your card abroad, fees are now capped at a maximum of 2% of the transaction amount.
* International Cash Withdrawals (Excluding GCC NET): Withdrawing cash internationally will now cost a maximum of 3% of the transaction value, with an overall cap of SR25.
* Disputed transactions: Challenging incorrect transactions or account statements will incur a fee of no more than SR15.
Importantly, SAMA clarifies that these fees do not include any delivery charges.You can avoid additional costs by collecting your new card directly from your bank branch.
Cheaper Checks and Standing Orders: Simplifying Traditional banking
The cost of traditional banking services has also seen ample reductions. These changes streamline common tasks and save you money:
* Bank Check Issuance: obtaining a bank check now costs SR5, down from the previous SR10.
* Check Copies (Over One Year Old): Requesting a copy of a check older than one year is now SR10, reduced from SR20.
* Standing Payment Order Setup: Setting up a recurring payment at a branch now costs SR5, a significant decrease from SR15.
* Standing Payment Order Revocation: Canceling a standing payment order is now completely free.
These adjustments make everyday banking tasks more affordable and accessible.
Low-Cost Electronic Transfers: Embracing Digital Payments
SAMA is actively encouraging the use of digital transfers by standardizing and lowering associated fees. This benefits both individuals and businesses:
* Transfers up to SR2,500: A flat fee of just SR0.5 applies.
* Transfers between SR2,500 and SR20,000: The fee is capped at SR1.
This standardization removes cost barriers for small and medium-sized transactions, promoting wider adoption of digital payment methods.
Free & Reduced-Cost Account Documents: Increased Openness & Access
Access to your financial information is becoming more affordable. SAMA has eliminated or lowered charges for essential account documents:
* Debt Confirmation/Transfer Certificate (Frist Issuance): Now free of charge.
* Account statements (Less Than One year Old): Available at no cost.
* Account Statements (Over One year Old):
* SR15 if requested at a branch.
* Free if requested electronically.
This move aligns with SAMA’s broader goal of increasing transparency and making vital information readily available.
what’s Next? Implementation Timeline & Resources
Financial institutions have a 60-day window to update their systems and ensure full compliance with the new fee guide. You can find the complete guide, in Arabic, on SAMA’s Rulebook via their official website: https://www.sama.gov.sa/en-US/RulesRegulations/Pages/Rulebook.aspx.
The Bottom Line
These changes represent a positive step forward for the Saudi financial sector. By lowering fees
