I. Transfer time shall be the actual time at which the drawing bank is credited and the drawee bank is debited after clearing in the clearing house.

II. For all checks drawn at branches within the regional clearing cities (Riyadh, Jeddah & Dammam), together with very close locations, the transfer time shall be zero if submitted in the same city. But such checks may be returned on the day following their submission at the latest (i.e. if the check was submitted on a Saturday, it may be returned on Sunday of the same week at the latest).

III. The transfer time shall be zero for all checks drawn at bank branches inside the regional clearing cities (Riyadh, Jeddah & Dammam) and submitted at another regional clearing city (such as a check submitted to Riyadh's clearing house and drawn at a branch in Jeddah or Dammam). But such checks may be returned after one full working day of its submission at the latest (i.e. if a check is submitted on a Saturday, it may be returned by Monday of the same week at the latest).

IV. The transfer time shall be zero for all checks drawn at branches in other cities outside the regional clearing cities (Riyadh, Jeddah & Dammam) and submitted in the regional clearing cities (such as a check submitted to the clearing house in Riyadh and is drawn at a bank branch in Abha). But such checks may be returned within 3 working days following the day of their submittal (i.e. if a check is submitted on a Saturday, it could be returned on Tuesday of the same week at the latest).

V. All checks submitted to the clearing house by the submitting bank shall be credited to its account and debited to the account of the drawee bank the same day.

VI. The transfer time for all checks shall be zero. No consideration shall be given to the transfer time except in the case of returned checks as per II, III & IV above, according to the table attached to circular BC/185, dated 20/4/1415 H, as amended by circular BC/200, dated 4/5/1415 H.

VII. The bank may return the check drawn thereat within the stipulated period and it does not have to wait to the last day, but cannot return it after that period. The bank that submits the check has the right to refuse the return of the check by the paying bank after the stipulated period. But if the paying bank (the drawee) returns the check after the stipulated period and the submitting bank has accepted the check by mistake, the submitting bank has the right to again return this check to the drawee. Consequently, the submitting bank may settle the dispute regarding returned checks with the drawee by cooperation within the clearing house.

VIII. SAMA is by no means responsible for the risk of returned checks and potential disputes arising from the return of a check by the drawee bank after the stipulated period and the acceptance of the check by the submitting bank. In this case, the bank representative at the clearing house must always make sure of the checks drawn thereat and delivered thereto in packages after clearing, which may sometimes contain returned checks, to be sure of the period during which the drawee is allowed to return such checks. Therefore, bank representatives must cooperate among themselves regarding returned checks as agreed at the above mentioned meeting.

IX. The banks must credit the client, after the stipulated period for check return, on the day following the last day of that period.

X. Some branches shall be exempted from applying the transfer time system on returned checks in view of their remote location and in accordance with circular BC/185, dated 20/4/1415 H, as amended by circular BC/200, dated 4/5/1415 H.

XI. The effective date of this system shall be Saturday 7/4/1416 H. (2/9/1995 A.D.), noting that the banks shall at that date start printing their client checks in accordance with the new transfer time system. However, banks shall be allowed to submit checks printed according to the old system to the clearing house for a maximum period of 12 months as of the effective date of the new system, after which all checks must be submitted in accordance with the new system.