New tariff for financial institution services to take effect tomorrow

Logo of Saudi Central Bank (SAMA)

The new amendments to the fees outlined in the financial institutions’ services tariff guide will come into effect tomorrow, Feb. 20, following the expiration of the 60-day grace period.
 

In December, the Saudi Central Bank (SAMA) announced the issuance of the financial institutions’ services tariff guide, replacing the currently applicable banking tariff.
 

The guide includes amendments to several fees, notably lowering the maximum cap on a number of financial services provided to individual customers. These include administrative fees associated with certain financing products, reissuance of Mada cards, international purchase and cash withdrawal transactions, as well as transfer fees from bank accounts and electronic wallets.
 

The guide also stipulates that a number of core services will be provided free of charge, including opening a current account or electronic wallet, issuing and renewing Mada cards, and reissuing a card if retained by an ATM.
 

Other free services include cash deposits, cheque deposits, transfers between a customer’s accounts within the same bank, and balance inquiries via ATMs.
 

Customers may also obtain an IBAN certificate, clearance letters, no-liability certificates, proof of indebtedness, mortgage release documents, and electronic account statements—whether issued electronically or through a branch—at no cost.
 

The guide caps administrative fees for mortgage and personal financing at 1% of the financing amount or SAR 5,000, whichever is lower, ensuring customers are not burdened with excessive additional costs.
 

It further prohibits financial institutions from adding any profit margin to services provided by third parties, such as card delivery fees or vehicle registration renewal fees.
 

The guide applies to all financial institutions supervised and regulated by SAMA, including payment companies that provide a wide range of financial services. This marks the first edition of the guide in terms of the scope of financial institutions covered, and the third edition for the banking sector.