In a move aimed at enhancing transparency and raising the level of financial services in the Kingdom, the Saudi Central Bank (SAMA) a binding circular to all financial institutions and banks under its supervision, stipulating that they provide a wide range of banking services completely free of charge to customers and without imposing any administrative or operational fees.
List of free services: Accounts and cards
According to the recent circular, the list includes 25 essential services that address the daily needs of citizens and residents. These services include opening current accounts, whether at traditional banks or electronic wallets, as well as cash withdrawals and deposits, and check deposits. The Central Bank also emphasized that issuing and renewing Mada cards upon expiry, or reissuing them if they are retained by ATMs due to technical errors or customer delays, are free of charge.
Electronic transactions and payments
As part of supporting digital transformation, the directives included free use of the Mada card for purchases at points of sale locally and online, as well as its use within the GCC via the GCC network. Free services also include balance inquiries, printing mini-statements via ATMs, and paying government and utility bills and receiving refunds.
Transfers, documents, and mortgages
The Saudi Central Bank (SAMA) confirmed that the free services extend to include canceling standing orders, adding beneficiaries to transfers, and executing transfers between accounts within the same bank. Regarding mortgage financing, the central bank mandated that banks release mortgages on properties owned by clients free of charge upon full settlement of outstanding obligations. As for documentation, the issuance of identification certificates, clearance certificates, debt documents, IBAN certificates, and electronic account statements (regardless of the duration) is now completely free.
Context of the decision: Vision 2030 and the development of the financial sector
This decision cannot be viewed in isolation from the Kingdom's strategic directions; this move is an integral part of the Financial Sector Development Program , one of the programs under the Kingdom's Vision 2030. The program aims to empower financial institutions to support the growth of the private sector while ensuring the protection of financial consumers. Mandating these free services from banks enhances customer confidence in the banking system and encourages engagement with official banking channels, thus benefiting the national economy and combating financial illicit activities.
Strengthening the principles of protecting bank customers
This circular reflects the Saudi Central Bank's commitment to implementing its previously adopted "Principles for Protecting Bank Customers," which place the customer at the heart of regulatory concerns. By eliminating fees for essential services and necessary documentation, SAMA removes financial barriers that customers may face when switching banks or settling their financial affairs, thus creating a fair competitive environment among banks to offer the best quality services rather than competing over hidden fees.
