Regulatory Alerts2023-09-12
Emphasis on the Obligation to Replace Damaged Saudi Banknotes
The Saudi Central Bank mandates that all domestic banks and financial institutions replace damaged Saudi banknotes submitted by beneficiaries, ensuring the notes are authentic, retain at least 60% of their original surface area, and have intact signatures or serial numbers. Financial institutions must coordinate with Central Bank branches to deposit withdrawn notes, particularly when compensation exceeds 10,000 Saudi Riyals or when damage obscures key features due to fire, washing, or chemicals. This circular supersedes previous directives and establishes a standardized acceptance mechanism, with the Central Bank actively monitoring compliance and enforcing regulatory measures for non-adherence.
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