The Office of The Vice Governor

No. 42/ID

Date: 20-1-1412 H

(25-1-1992 A.D)

Circular to All SAMA Branches and Banks Operating in The Kingdom

Subject: Saudi Banknotes

Regards,

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.

Please be informed and comply.

Regards,

Vice Governor

Dr. A. A. Al-Malik