Banking Control

No. 1419/BC/40

Date: 4-2-1407H

(7-10-1986 A.D)

Circular to All Banks Operating in The Kingdom

Greetings,

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. SAMA 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.

Regards,

Director General of Banking Control

J. A. Al-Suhaimi

CC.:The Office of HE the Governor

HE the Head Cashier

HE the Director of the Treasury and Issue Department

HE the Chief Auditor

Banking Control (3 copies)

All SAMA Branches