Every Bank shall initially pay a flat rate premium to the DPF as may be specified by SAMA from time to time. However, SAMA may at any time change the basis for calculation of premium, and may in particular move from a flat rate to a risk-based method;
ii.
The annual premium owed by a Bank for an Assessment Year shall initially be 0.05% of the average amount of Deposits of Eligible Depositors held by the Bank. However, SAMA may review the premium rate from time to time and make changes therein as deemed appropriate after taking into account the relevant factors including size of the accumulated DPF. Any such change in premium rate shall be notified to Banks at least six months in advance;
iii.
The amount of premium shall be payable on a quarterly basis and calculated by Banks at the rate of one-fourth of 0.05% (i.e. 0.0125%) of the average amount of deposits of Eligible Depositors held by the Bank during the preceding calendar quarter. The quarterly average of deposits will be calculated by adding the opening and closing balance of deposits of Eligible Depositors during a calendar quarter and dividing it by 2. The payable premium must be paid by a Bank within thirty (30) days of the end of each calendar quarter. The first premium payment shall be for the quarter ending 31st March 2016 and shall be paid by 30 April 2016;
iv.
No premium contribution (or part thereof) shall be refundable to a Bank in any circumstance;
v.
The annual premium payable by a Bank shall be based on returns containing data of Deposits to be certified by its Managing Director or Chief Executive Officer and must be submitted in the form and within the deadlines determined by SAMA;
vi.
If a Bank fails to make a premium payment in full and on time, SAMA may impose a premium surcharge and take any other punitive action against the defaulting Bank as permitted under the Banking Control Law.
