Bank fee reductions in Saudi Arabia 2024: Details of the new tariff
Banks and financial institutions operating in Saudi Arabia have begun officially notifying their customers of the updated structure of banking service fees, in accordance with the "Financial Institutions Services Tariff Guide" issued by the Saudi Central Bank (SAMA). This step aims to cap several fees that previously burdened customers, and these amendments are scheduled to become mandatory by February 22nd.
A regulatory framework aimed at promoting financial inclusion
This guide replaces the previously applicable banking fees, reflecting the Saudi Central Bank's commitment to developing the financial sector in line with the goals of Vision 2030. Its primary objective is to promote financial inclusion and ensure that all segments of society have access to financial services and products at fair and affordable prices. The guide also focuses on enhancing transparency and disclosure, thereby strengthening trust between financial institutions and their customers, and directly supporting the digital transformation strategy by encouraging customers to use electronic channels, which are often less expensive than visiting branches.
Discount details: Cards and financing
The new fee schedule includes significant reductions that will benefit a wide range of citizens and residents. Perhaps the most notable change concerns the fees for issuing replacement cards for lost or damaged ones , which have been capped at just 10 riyals, down from the previous 30 riyals. The same reduction applies to issuing supplementary cards.
Regarding financing products, the guide brought good news for borrowers, as the maximum administrative fee (personal finance administrative fee) was reduced to 0.5% of the loan amount or SAR 2,500 (whichever is less), compared to the previous rate of 1% or SAR 5,000. This reduction significantly lowers the overall cost of personal loans.
International transaction fees and other services
The amendments were not limited to local financing and cards, but also included international transactions, where the fee for international purchase transactions was set at 2% of the transaction value. The guide also included reductions in fees for erroneous transaction objections, issuing additional checkbooks and bank checks, as well as fees for standing orders and proof of debt documentation.
Expected impact and timeframe
This decision is expected to ease the financial burden on individuals and increase competition among banks to provide better services. The Central Bank has mandated that all financial institutions under its supervision, including payment companies, implement these fees within 60 days of the guide's publication, with February 22nd being the deadline for actual implementation.
