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2019-05-01

Cash Feeding Requirements for ATMs

The Saudi Arabian Monetary Authority (SAMA) mandates that banks conduct ATM cash feeding and counting cycles no longer than ten working days, while tailoring dispensing logic to site-specific customer needs by stocking a minimum of three denominations in internal branches and two in external locations. Banks must automate ATM balancing procedures or utilize test and supervisor cards to verify cash placement and enable immediate reconciliation by feeding teams at cash centers. Additionally, financial institutions are responsible for resolving box reversal errors and customer overpayment incidents, bearing the burden of proof in case of disputes, with SAMA conducting field inspections to ensure compliance.

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In the Name of Allah, the Most Gracious, the Most Merciful

Saudi Arabian Monetary Authority Head Office

General Department of Currency and Branches

No.: 227 / 30902 Date: 26/08/1440 AH Attachments: None

Circular

Subject: Cash Feeding Requirements for ATMs.

Dear Sirs, Peace, mercy, and blessings of God be upon you,

Further to the Authority's instructions issued under Circular No. 36100006435 dated 03/05/1436 AH regarding reversal cases of currency denomination boxes in ATMs, Circular No. 351000009927 dated 22/01/1435 AH regarding the counting and feeding period for banks' ATMs, and Circular No. 27/27 dated 19/12/1424 AH regarding the distribution of currency denominations in ATMs. We hereby inform you that, based on the powers granted to the Authority under the Authority System issued by Royal Decree No. (23) dated 23/05/1377 AH, and the Banking Control System issued by Royal Decree No. (M/5) dated 22/02/1386 AH, the following is decided:

  1. The feeding and counting period for ATMs shall be every ten working days at the maximum, taking into account cash estimates, site characteristics, and operational risks.
  2. The mechanism for distributing dispensing denominations during withdrawals from ATMs (Dispense Logic) shall be determined by the bank's estimates, which must be based on site characteristics and customer needs. All internal bank ATMs located in branches and transfer centers shall be fed with a minimum of three currency denominations (500 - 100 - 50), ensuring these three denominations are dispensed to customers during cash withdrawals. As for external ATMs located on roads, in commercial complexes, and elsewhere, they shall be fed with a minimum of two currency denominations, ensuring these two are dispensed to customers during cash withdrawals. The distribution of currency denominations shall be re-evaluated after six months of implementation by the General Department of Branches and Cash Centers.
  3. Banks shall determine the device feeding mechanism, allowing either the replacement of all currency denomination boxes when the device requires cash, or the replacement of only the depleted denomination box. It is mandatory that the box or boxes be prepared at the cash center and secured under dual control and CCTV surveillance, after the bank establishes the necessary mechanisms and accounting procedures for this purpose.

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In the Name of Allah, the Most Gracious, the Most Merciful

Saudi Arabian Monetary Authority Head Office

General Department of Currency and Branches

No.: 227 / 30902 Date: 26/08/1440 AH Attachments: None

  1. Banks shall automate the ATM balancing procedures by implementing an automated system for device balancing. In the absence of such a system, test cards must be used, allowing the feeding team to conduct a test withdrawal after each feeding to verify the placement of currency denominations inside the boxes. Banks must also commit to using the supervisor's administrative balancing cards (Supervisor Card), which enable the feeding team at cash centers to reconcile ATMs immediately without waiting for the bank's support departments to perform the reconciliation.
  2. Banks shall address box reversal errors resulting from ATM feeding, as well as cases where customers receive monetary amounts due to technical or human errors, as determined by the bank. The bank shall bear the burden of proving the error if the customer objects to its procedures.

For information and implementation effective from its date. The Authority will conduct field visits to verify compliance with these instructions. For any inquiries regarding this matter, please contact Advisor to the Deputy Governor for Financial Sector Development, Mr. Mohammed bin Abdulaziz Al-Amri, via email: (malaamry@sama.gov.sa).

Yours sincerely,

Hashem bin Uthman Al-Haqeel Deputy Governor for Financial Sector Development

Distribution Scope:

  • All banks and financial institutions operating in the Kingdom
  • Licensed money transfer companies
  • Operators of unified cash centers
  • His Excellency the Deputy Governor for Supervision
  • General Department of Branches and Cash Centers
  • General Department of Legal Affairs
  • Currency Department

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P.O. Box 2992, Riyadh 11169, Tel: +966 11 4633000 - Fax: +966 11 4662980 Email: currency@sama.gov.sa

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