SAMA noted frequent complaints from the public about the refusal of tellers inside the branches to accept cash deposits from customers, setting a minimum limit for accepting them, and directing them to deposit cash through cash deposit machines. 

Accordingly, SAMA stresses the commitment of all branches of the bank to accept cash deposits regardless of their amounts directly through the branches and to grant customers the freedom to choose the appropriate deposit method for them.

Due to instances where some banks deposit banknotes to SAMA that are composed of two parts from different notes of the same denomination, each part bearing a different serial number and glued together to create the impression of a single valid banknote for compensation purposes,

SAMA emphasizes the importance for banks to thoroughly audit their daily deposits and ensure their validity. In the event of discovering a banknote composed of parts from two different notes, the following actions must be taken:

1. Stamp it with a "Not Eligible for Compensation" mark.
2. Send it to SAMA, as it is not eligible for compensation.

If a banknote with two different serial numbers is deposited with the Central Bank branches, it will be confiscated by the Central Bank, and the necessary regulatory actions will be taken.

Referring to SAMA's Circular No. 42406/MAT/547 dated 07/09/1429H, and Circular No. 42/N/Th dated 20/01/1412H, regarding the emphasis on the necessity of maintaining the integrity of circulating banknotes and the importance of inspecting and sorting banknotes before disbursing them to customers or when feeding ATMs, we inform you that SAMA has observed that some banks are disbursing banknotes to customers and feeding ATMs with torn or damaged banknotes.

Therefore, we emphasize the need to give sufficient attention to the integrity of the circulating banknotes in branches, cash centers, and ATMs affiliated with the bank. Supervisors and bank officials are required to oversee, monitor, and follow up on the process of feeding ATM cassettes in collaboration with cash-in-transit companies, ensuring that this responsibility is not solely entrusted to these companies. Banks and financial institutions must also ensure the use of modern machines capable of sorting sound banknotes from others. Banknotes should be in an acceptable condition in general appearance, not worn out or dilapidated, and their general appearance should be clean. The main colors of the banknotes should be clearly visible, free from adhesive tapes, with all edges and parts intact, and should not be torn or have holes. Additionally, the banknotes should be free from defacing writings or stamps.

SAMA will verify the extent of compliance by banks and financial institutions with these instructions, regulations, and procedures, and appropriate penalties will be imposed on any non-compliant entity

Referring to SAMA's Circular No. 381000092716 dated 03/09/1438H regarding adherence to the guidelines in the Security and Safety Manual when cash-in-transit teams carry out transportation operations from customer locations and bank branches to cash centers, and in light of certain inquiries regarding the responsibilities of the cash counting team at customer premises.

We would like to clarify that there is no objection to having an independent team of Saudi nationals handle the counting and preparation of cash at the customer’s premises, followed by a separate independent team conducting the cash transportation. There must be a clear separation of duties and responsibilities between the cash counting team and the cash transportation team. Additionally, the cash amounts must be received in special containers equipped with automated tracking and self-destruction ink systems to minimize the risk of robbery or theft.

Referring to SAMA’s Circular No. 2887/MAT/101 dated 21/2/1420H, which supplements previous circulars urging banks to exercise due diligence and care when receiving banknotes from their customers to detect counterfeit notes before depositing them in their vaults and subsequently delivering them to SAMA. The circular included SAMA’s decision to impose a financial penalty on banks delivering counterfeit banknotes to SAMA, amounting to ten times the value of the counterfeit note, in addition to its confiscation.

In continuation of the financial penalties imposed under SAMA’s punitive decisions in this regard, SAMA reaffirms the enforcement of the maximum financial penalty stipulated in Paragraph 5 of Article 23 of the Banking Control Law, amounting to SAR 5,000 for each counterfeit banknote delivered to SAMA, regardless of the denomination. SAMA urges all banks to exert greater care and attention in examining banknotes and ensuring their authenticity before delivering them to SAMA.

Referring to SAMA’s observation of some circulating banknotes being tampered with, whereby certain security features are deliberately removed and then presented to banks for replacement with new banknotes, this practice contributes significantly to the waste of economic resources and shows a lack of respect for the national currency, which represents a symbol of the state.

Therefore, please direct anyone requesting the replacement of banknotes that have been defaced or tampered with regarding their security features to SAMA branches located across the Kingdom. Additionally, ensure that all staff members involved in receiving banknotes are well-trained and familiar with the main security features of Saudi currency, such as the 3D security thread, the 3D special ink feature, the shiny silver stripe, and other security features highlighted in the publications issued by SAMA when launching its banknote editions or available on SAMA’s website through the following links:

Security Features of the Fifth Edition
Security Features of the Sixth Edition

Referring to SAMA Circular No. 34736/BCI/15864, dated 1432 H and Circular No. 34734/BCI/15865 dated 10/071432 H, which includes reference to previous circulars issued by SAMA regarding banknotes and coins, and the receipt of damaged ones.

Due to the commencement of the "Take the Change" campaign launched by the Ministry of Commerce and Industry in coordination with SAMA to provide coins to customers, and to indicate that fines will be imposed on violating stores starting from 10/10/1434H, and in order to continue the coordination and cooperation between SAMA and the banks in this matter, we would like to emphasize the responsibility of banks to comply with the instructions given in previous circulars. We would also like to assure that small denominations of banknotes and coins are available in sufficient quantities at SAMA branches, and there is no reason for banks not to provide them to customers.

For your information and action accordingly as of this date. SAMA will conduct field visits to cash centers, bank branches, and money exchangers to ensure the availability of various denominations of banknotes and coins for individual and corporate customers. Penalties will be imposed on violators.

Referring to SAMA circulars regarding the acceptance and exchange of small denominations (specifically the one riyal and five riyals denominations), including:

In view of the fact that some banks do not abide by the content of these circulars and are reluctant to accept and replace small denominations, SAMA wishes to emphasize the importance of full compliance with the contents of the circulars referred to above.  

We hope to assign the competent department to verify the commitment of the branches to accept and replace all cash denominations, and to meet the public's need for those denominations.

In reference to the circulars issued by SAMA regarding the assignment of banks to receive and replace damaged banknotes (torn, burned, eroded, incomplete edges or parts, or missing any of their main features due to dirt or due to adhesives or inappropriate phrases and words written on them....), including:

In view of the observation that some banks do not comply with the content of these circulars and their reluctance to receive requests from citizens and residents regarding the replacement of unacceptable banknotes, and based on SAMA's keenness to provide intact and valid banknotes for circulation, we would like to emphasize what was stated in the circulars referred to above, and to accept and replace the various denominations of currency after ensuring their safety from counterfeiting, with the adoption of the following new mechanism for accepting and compensating damaged cash submitted by the public.

1. The replaced banknote must be clearly defined and its area should not be less than 60% of the size of the original banknote.
2. The full signatures (Minister of Finance and Governor of SAMA) or all the serial numbers should not be missing.
3. In the event that the features of the banknote are not clear as a result of exposure to fire or other natural factors such as corrosion, the holder shall present it to one of the branches of SAMA.

We hope to adhere to this and emphasize on all your branches and cash centers to handle intact cash and withdraw damaged and invalid cash from circulation, noting that SAMA and its branches are fully prepared to provide training courses to stakeholders in order to inform them of the best practices in the field of cash circulation.

In an effort to find an appropriate mechanism to address cases of surpluses and shortages that may occur in bank deposits and the resulting approved fines during the counting and inspection at SAMA branches , and based on Circular No. 21453/TD dated 08/10/1424 H. Regarding the organization mechanism for counting and sorting bank imports of currency in one-riyal denominations. Therefore, we hope that the following will be considered:

First: Emphasis on banks adhering to the screening standards acceptable to SAMA, with the importance of communication between employees handling the cash sorting at the banks’ cash centers and the officials at SAMA branches.

Second: banknotes of the one Riyal denomination are counted, sorted, and inspected 100%.

Third: In the event of an increase in the quantity of one-riyal denomination unsuitable for circulation imported by banks, and if counting and inspecting them by SAMA branch in a timely manner is not possible, then they will be entirely counted with the inspection and sorting of only 30%. If any inappropriate banknotes are found among them (such as intact notes with missing parts or intact notes glued from different parts), a fine amounting to three times the value of the inappropriate banknote will be imposed.

Fourth: The increase and decrease restriction, as well as fines, rely on counterfeit currency and non-conforming currency of the one-riyal denomination in bank imports automatically.

We inform you that the fifth edition of one-riyal denomination will be issued starting from Monday 21/12/1428 H corresponding to 31/12/2007 G, and these denominations will be circulated along with the banknotes currently in circulation in all their denominations as official currency. Note that the denomination of one riyal of the fifth issue includes the following security features and currencies: 

First: The main features of the one-riyal banknote: 

The face of the banknote shows the picture of the Custodian of the Two Holy Mosques King Abdullah bin Abdulaziz Al Saud (may God protect him) and a picture of the face of the first Islamic dinar, and on the back is a view of the headquarters building of SAMA.

 (Main Paper Color: Light Green/ Size: 133× 63 mm) 

Second: Security signs in the category of one riyal denomination:

 The one-riyal banknotes include the following security signs:

1- Tactile Intaglio Printings

2- Watermark

3- Security Thread 

4- See-Through Features

5- Luminescent Inks

6- Screened Intaglio Micro Engraved Lettering

7- Black Mag. M.R Serial Number

8- Red Fluorescent Serial Number

For more information on this denomination, you can view the attached brochure, or refer to SAMA's website (sama.gov.sa) as of the date specified above.

We inform you that the ten riyals and five riyals denominations of the fifth edition will be issued as of Monday 2/7/1428 H corresponding to 16/7/2007 G, to be followed by the rest of the denominations, which will be gradually issued according to a specific schedule, which will be communicated to you at the time, and these denominations will be circulated along with the currently circulating paper currencies of all their denominations as official currency. Note that the ten riyals and five riyals denominations of the fifth edition include the following security features and signs: - 

First: The main features of the ten-riyal banknote: 

The face of the banknote shows the image of the Custodian of the Two Holy Mosques King Abdullah bin Abdulaziz Al Saud (may God protect him) and a view of King Abdulaziz Palace (may God have mercy on him) in the square, and on the back a view of part of the buildings of the King Abdulaziz Historical Center in Riyadh.

 (Paper Color Chair: Brown / Sheet Size: 150 × 68mm)

 Second: The main features of the five-riyal banknote:

 On the face of the banknote is a picture of the Custodian of the Two Holy Mosques King Abdullah bin Abdulaziz Al Saud (may God protect him), a view of the Ras Tanura refinery, and a view of the port of Jubail in the Eastern Province on the back.

 (Paper Color Chair: Purple / Paper Size: 145 × 66 mm) 

Third: Security signs in the ten and five riyals denominations:

 Ten and five riyal banknotes include the following security signs:

1. Tactile Intaglio Printings
2.  Watermark 
3. Security thread 
4. See-Through Features tags
5.  Luminescent Inks 
6. Screened Intaglio Micro Engraved Lettering 
7. Black Mag. M.R. Serial Number
8.  Red Fluorescent Serial Number 

For more information about these two denominations, you can view the attached brochures, or refer to SAMA website as of the date specified above.

SAMA would like to report its intention to withdraw the old version of the five hundred and one hundred denominations from circulation, and this will be announced through a statement to the Saudi Press Agency that will be broadcast on Monday, 15/4/1426 H to urge the public to replace the old version at all branches of SAMA and local banks, and that this requires the readiness of local banks and their branches to receive requests from the public to replace these two categories, and that the bank can request any quantity expected to be needed from these two denominations from SAMA branches.

We would like to emphasize that ATMs should not be fed with old versions of these two denominations absolutely, and the bank must fully comply with the instructions communicated in SAMA Circular No. 400/BC/241 dated 21/10/1413 H and No. 23782/MA/251 dated 14/9/1414 H regulating cash circulation and ensuring its safety before re-introducing it for circulation and dispensing it to customers, to comply with it, with your support for receiving this circular urgently for importance.

Referring to SAMA Circular No. MAT/313 dated 28/11/1424 H supplementary to SAMA Circular No. 18578 /A K dated 23/08/1423 H referring to the circular of His Royal Highness the Minister of Interior No. 16/36751/2 Sh dated 01/08/1423 H on the controls and procedures to be followed when seizing counterfeit banknotes, which included the obligation to provide SAMA with a semi-annual report on the cases on which controls and procedures have been applied and their feasibility in combating counterfeiting.

Therefore, the bank/money changers must provide SAMA with this report to date, as well as provide us with your observations and assessment of these procedures based on your dealings with those with whom counterfeit banknotes are seized, and this should be of urgent importance.

Further to our circular No. 3293/MAT/27 dated 14/2/1422 H on educating bank customers about handling cash, we would like to inform you that SAMA still receiving reports from the police departments in the Kingdom about the exposure of some bank customers being robbed while leaving the branch as a result of carrying cash, as well as fraud against elderly retirees when withdrawing their salaries from ATMs.

Given the danger that such acts entail for bank's customers themselves and for the bank itself, harming its reputation and confusing the security authorities, the bank must activate the aforementioned SAMA circular, as well as educate the bank's customers in general and the elderly in particular on how to use ATMs, maintain the ATM card and its PIN, not disclose it, and not be deceived behind those who offer to provide its services, which may involve offending them. It is for its customers to assign one of its employees to help this category of customers and train them to use ATMs and secure the presence of civil guards during salary disbursement periods to miss the opportunity for anyone who tries to defraud these customers, with our emphasis on full compliance with SAMA's repeated circulars regarding securing cameras for ATMs and maintaining recording tapes for the longest period of time that technology can provide in this field.

Due to the observed contrast in the colors of the external linking cards of the banknotes received from banks, which causes some confusion for treasury officials and a desire to facilitate work procedures between the branches of SAMA and banks.

Therefore, we hope to unify the shape of the external card for the banknote categories by placing the name or logo of the bank on the back of the card with cutting one of its corners and writing the phrase "one thousand banknote sheets of the same category and a date box in white font", provided that the comprehensive color of the external card for each category is as follows:

With reference to the above-mentioned subject, and given the complaints received by the central bank against some banks for not accepting customers' deposits of coins and banknotes (especially small denominations), despite the repeated instructions regulating this process, the most recent of which was Circular No. 16101/CK on 10/20/1420 H. in an effort to streamline the procedures by which bank customers make deposits, and to attract all deposits of coins and banknotes for the service of these customers, encouraging their acceptance of all Saudi currencies, and to prevent the risks that may arise from the presence of these amounts in unsecured locations, which may expose them to theft or misuse, and in confirmation of previous instructions in this field, the central bank hopes that all banks will work on installing the machines and safes mentioned below in the main branches of the bank and the branches located in commercial markets:

First: Automatic coin sorting and counting machines available in the local market should sort and count all denominations of coins (100, 50, 25, 10, 5) Halala and directly credit the full value to the customer's account. The customer will operate the machine using a personal identification number (PIN), place their coins into the machine, and enter their account number so that the amount can be credited to their account accordingly.

Second: cash deposit safes outside of banking hours (night deposit) that are accessed and managed using a special code assigned to the bank's customers under an agreement between the bank and its customers. The customer places the cash into a sealed envelope, detailing the amounts deposited inside. These deposits are received under the custody of two bank employees, and internal control procedures are applied to the processes of counting, sorting, and depositing into customers' accounts according to the bank's customary procedures.

For your information, compliance, and to inform us of the required time frame within which the bank can execute this, as well as the branch locations where coin sorting machines and night deposit safes will be installed. Coordination can be done with the central bank regarding the machines that can be used for coin sorting to understand their sources and how to provide them.

Re previous SAMA circulars indicating that banks and money exchangers must supply the public with banknotes of small categories and coins, and in view of the steady and increasing demand by the public for such currencies, banks and money exchangers have to maintain sufficient amounts of these currencies to meet the public demand therefor.

SAMA, through its examiners, shall follow-up this matter with banks and money exchangers to make sure they are acting accordingly. SAMA hopes you comply with this circular and notify your branches to do the same.

SAMA has received some complaints regarding the refusal of some bank branches to accept deposits in small categories on grounds that this process requires big effort in counting, separating and keeping.

SAMA would like to stress again that banks have to perform their legal responsibility in this respect according to the provisions of several previous circulars issued by SAMA to the effect that all banks have to accept the deposit of such currencies, regardless of amount.

We hope you comply with this in the interest of the public and the reputation of the banks and notify your branches to do so. SAMA, through its examiners, shall inspect the compliance of banks with such instructions and shall impose adequate penalties on violating banks.

Re our circulars No. 422/M/T dated 8/11/1413H and No. 400/BC/241 dated 21 Shawal, 1413H, regarding the distortion of banknote by some people and the feeding of ATM machines with torn up or damaged bank notes by some banks we wish to inform you that, according to some SAMA branches some banks are not observing instructions in this regard. It was also noted that some banks do not separate banknotes suitable for circulation from those not suitable for circulation when they deposit cash with SAMA branches.

In view of the importance of this matter, SAMA calls on you to supply the public and feed the ATM machines only with clean and usable banknotes. We also call on you to separate banknotes that are suitable for circulation from those that are not suitable when you make cash deposits with SAMA branches. Please collect the non suitable banknotes and have them replaced by SAMA, rather than supplying them to the public.

Please be informed and act accordingly. SAMA shall conduct inspection visits at a later date and we hope you will cooperate with the examiners in the interest of the public.

SAMA has received the letter of HE the Minister of Finance & National Economy, No. 3/6132 dated 14-9-1413H stating that some banks are sometimes supplying the public with torn banknotes noticed by drawee only after receipt. HE requested us to notify banks to have such banknotes replaced by SAMA rather than cashing them to the public, since this displeases the clients, causes their complaints and facilitates counterfeiting.

Please be informed and urge your people in charge to have all torn Saudi bank notes replaced by SAMA, rather than supplying the public therewith. Please observe prior coordination with the SAMA branch through which the replacement of large quantities is to be made.

SAMA has noticed that some of its branches and banks fail to comply with previous instructions which call on them to separate the banknotes into categories and set aside banknotes that are suitable for circulation. Pursuant to the provisions of the Saudi Currency Law promulgated by Royal Decree (6) dated 1-7-1379H and in line with applicable rules, it has been decided as follows:

1- SAMA Branches must, upon receiving cash deposits, separate banknotes into suitable and unsuitable for circulation after making sure they are intact.

2- Local banks must use the machines for automatic separation of recent banknotes which enable them to separate the intact banknotes from others. In case such machines are not presently available, banks and their branches have to do the separation by hand according to the following rules.

a) The banknote must be in a generally acceptable form, not worn-out or totally damaged.

b) The general appearance of the banknote must be clean and its main colors must be clear.

c) The banknote must be free of stickers.

d) The banknote must be complete in all its parts and edges.

f) It should not be torn up or perforated.

g) It should be free of ink, oil or chemical materials.

i) It should be free of writings or stamps.

3 - Banknotes shall be delivered to SAMA separated into suitable and un-suitable for circulation and the delivering bank or branch shall be responsible for the banknotes delivered thereby. The receiving SAMA branch has the right to reject non-separated banknotes. SAMA branches must not deliver to SAMA's head office banknotes unless they are separated, with a statement indicating the banknotes that are not suitable for circulation. SAMA branches should not deliver to other branches banknotes that are not separated and suitable for circulation.

SAMA and its branches have received complaints from the operations of automatic sales machines to the effect that some banks refuse to accept the deposit of banknotes in one SR category. Some of SAMA branches were obliged, as a temporary solution to this problem, to replace the revenue of such operations on a daily basis.

SAMA regrets this behavior by some banks and stresses on all banks to accept all Saudi currency categories for deposit or replacement and to notify all their branches to act accordingly.

Pursuant to arrangements agreed on by the currency authorities in the GCC countries, and reference to our circular BC/34 dated 2-2-1411H, re the trading of GCC banknotes (Oman, UAE. Bahrain and Qatar) al the official rates with a margin not exceeding 0.5% according to daily cross rates for these currencies, we wish to inform you of the following:

1. The following rates must be adopted:

2. The price fixed by the bank or money exchanger should be between the lowest and highest prices and trading prices are assumed to be closer to the reference price which is equivalent to the official price.
3. We suggest that the collected amount of each currency be exchanged first among correspondent commercial banks or money exchangers among themselves. The margins were fixed in such a way as to cover the expenses of exchanging and transferring these currencies in order to allow trading banks and money exchangers in the GCC countries to trade among themselves with a profit. If this is not possible for any reason, SAMA will buy the GCC currencies from Saudi Commercial Banks against SR at the reference rate less 0.25% as a margin as follows:

One Bahrain Dinar=SR 9,9220

One Omani Riyal=SR 9,7150

One Qatari Riyal=SR1,0272

One UAE Dirham=SR 1,0184

4. Licensed money exchangers may deal with Saudi Commercial Banks or with banks and money exchangers in other gulf countries to buy or sell their stock of GCC currencies, provided they abide by the price limits referred- to above in their dealing with the public.

For compliance and notification of your branches to act accordingly

SAMA has been informed that some banks are refusing to accept small category banknotes from commercial firms and companies and are asking such depositors to deposit these banknotes in their accounts with SAMA.

Since the printing of such categories was meant to put them in circulation to be available for the public in daily operations, such attitude by the banks is in conflict with this purpose.

SAMA, therefore, would like to call on banks to keep an adequate supply of small category banknotes, specially the one and five SR categories and sufficient supply of coins to perform replacement operations for the public and the clients. Saudi Central Bank has issued the following rules to be followed by the banks.

1. The bank must accept from its clients any amount of small category banknotes.
2. The bank must count these banknotes by category and separate these suitable from those unsuitable for circulation.
3. Unsuitable for circulation banknotes shall be sent to the concerned SAMA branch which will count and receive them.
4. The bank must deliver to SAMA only banknotes in excess of its need or damaged banknotes.

We refer to several SAMA circulars regarding banknotes which carry unethical terms or words.

SAMA calls on banks to strongly instruct their employees who deal with cash to reject any such banknotes and to deliver them to the closest SAMA branch to take necessary action. SAMA also hopes that necessary measures will be taken to stop this phenomenon if possible.

SAMA has noticed lately increased complaints about shortages in banknotes disbursed by the banks, and the damages that such a phenomenon causes to the reputation of the banks and to the interests of the clients.

SAMA, therefore, requests the banks to observe the following:

1. Banks must post signs at a conspicuous place in all their branches urging the client to count his money before leaving the cash window.
2. Banks should assign in their large branches special windows for cashing large amounts and windows for cashing small amounts to facilitate the cashing process and to enable the client to count his money and check with the cashier in case of discrepancy before leaving the window.
3. Banks should place money-counting machines near the windows for cashing large amounts and have them available for the client, under the supervision of a special employee, to enable him to count his money and verify its accuracy before leaving the cash window.

We hope these procedures are implemented and your branches are notified to act accordingly.

Pursuant to its policy to enhance development in all economic sectors and build a diversified production base, the government has always strived to maintain a stable exchange rate of the SR which was fixed at 0.207510 of one gram of gold as of 13 Rajab, 1393H (1^st August 1973A.D). While keeping this exchange rate between SR and gold unchanged, the government announced on the 2^nd of Rabi I, 1395H (14^th March, 1975A.D) the linking of the SR to the Special Drawing Notes, in order to realize better stability for the SR against major world currencies, with a margin of 2.25% at both ends of the exchange rate between the SR and the Special Drawing Notes to limit undesirable fluctuations.

Accordingly, SAMA has resorted, since 3 Rabi I, 1395H, to fixing the exchange rate of SR against the $ daily on the basis of the daily value of the $ value against the Special Drawing Notes. But in view of recent notice able fluctuations in the exchange rate of the $ against the Special Drawing Notes, the government has advised the IMF that starting 4/9/1395H (9^th September, 1975A.D) it shall use a larger margin not to exceed 7.25% on both ends of the exchange rate between the $ and the Special Drawing Notes.

It is expected that this larger margin will be the best measure to protect the SR against sharp fluctuations in the $/Special Drawing Notes value and will ultimately realize more stability for the SR against major world currencies.

Please be informed.