Circular Re. the Launch of the Electronic Cheque Clearing System (ECCS)

P.O Box 2992 Riyadh 11169 Kingdom of Saudi Arabia Tel: +966 11 463 3000 +966 11 463 3000 :هاتف السعودية العربية المملكة 11169 الرياض. 2992 ب.

General Circular

To: Banks

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

Subject: Launch of the Electronic Cheque Clearing System (ECCS).

Based on the powers vested in the Saudi Central Bank (SAMA) under its system issued by Royal Decree No. (M/36) dated 11/4/1442H, which includes the authority of the Central Bank to establish, develop, and operate the infrastructure for national payment systems, clearing, and settlement, and to issue rules, instructions, and guidelines, and to supervise and monitor payment systems, clearing, and settlement within its jurisdiction.

We inform you of the launch by the Saudi Central Bank of the Electronic Cheque Clearing System (ECCS), aimed at developing the cheque clearing process using digital image standards (cheque truncation); which helps in achieving several positives such as performing clearing on the same day, and reducing the costs of transporting paper cheques.

Accordingly, we attach the rules of operation of the Electronic Cheque Clearing System (ECCS), the guide, as well as a document with frequently asked questions about the system and its answers.

In case of any inquiries, you can contact us via email at: ECCS@SAMA.GOV.SA for review, awareness, and action.

And accept our regards,

Yazid bin Ahmed Al Sheikh
Deputy Governor for Supervision

Distribution Scope:

• Banks and banks operating in the Kingdom.

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Classification:
SAMA ECCS Rules & Regulations
Version (1.0)
December 2025

ii
Classification:
This document has been designed as the official SAMA ECCS Rules & Regulations accurately reflects the current govern rules for eClearing System for Checks (ECCS). Following approval of this document, requirement changes will be managed by the project’s Business Owners, includingappropriate reviews and approvals.

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Classification:
TABLE OF CONTENTS
TABLEOF CONTENTS....................................................................................................................................................................... III
1 INTRODUCTION ............................................................................................................................................................................1
1.1 DOCUMENT PURPOSE.........................................................................................................................................................1
1.2 INTENDED AUDIENCE..........................................................................................................................................................1
1.3 ACRONYMS AND ABBREVIATIONS.............................................................................................................................................2
2 SCOPE .........................................................................................................................................................................................6
2.1 SCOPE/ BACKGROUND ........................................................................................................................................................6
2.2 BUSINESS OBJECTIVE...........................................................................................................................................................6
2.3 THE BUSINESS PROPOSED SOLUTION .........................................................................................................................................7
3 RULES &REGULATIONS OF ECCSCHECKS OPERATION.......................................................................................................................8
4 ACTORS.....................................................................................................................................................................................16
5 CHECK CLEARING PROCESS AT SAMACLEARING HOUSE (BCP CONTINGENCY)-ECCS.......................................................................16
6 CHECK CLEARING PROCESS AT SAMABRANCH (BCP CONTINGENCY)-ECCS....................................................................................17
7 TYPE OF CHECK ISSUANCE NOT PERMITTED UNDER ECCSENVIRONMENT ........................................................................................18
8 TYPE OF CHECK ISSUANCE PERMITTEDUNDER ECCSENVIRONMENT .............................................................................................21
9 REQUESTS FOR CUT-OFF TIME.......................................................................................................................................................21
APPENDIX I -UNIQUEIDENTIFIERCODE(UIC)..........................................................................................................................................22
APPENDIXII-REQUESTFOREXTENSIONOFECCSSUBMISSIONTIMEFOROUTWARD NORMAL /OUTWARD RETURN............................................23
APPENDIXIII–ECCSCODES FOR RETURN CHECK REASON .............................................................................................................................25
APPENDIX V- PRACTICES AND LIABILITIES FOR ECCS.................................................................................................................................26

1
Classification:
1 Introduction
1.1 Document Purpose
The purpose of this document outlines in detail SAMA’s Rules & Regulations for eClearing System for Checks (ECCS). ECCS aims to improve the Check clearing process using digital image processing (Check truncation). ECCS truncates the exchange of Checks among participating banks and SAMA (as participating) using digital Check images instead of physical Checks. The process involves scanning and transmitting the electronic image of the Checks along with relevant data, rather than physically sending the Checks to SAMA (as clearing house), and delivering the issuing bank Checks digitally in the same manner. This conforms to international standards used in United States of America (Check21) and the rest of the world where Check truncation/automation is adopted.
1.2 Intended Audience
EA, SAMA Enterprise Architecture Design team, party to ensure ECCS is designed, integrated, secured, and scaled to fit SAMA organization technical architecture direction, reviewing High Level Document (HLD) delivery DSD, SAMA Digital Solution Design team, party to ensure ECCS is designed, integrated, secured, and scaled to fit SAMA organization technical architecture direction, reviewing Lower-Level Document (LLD) delivery DCC, SAMA Digital Compute & Cloud (Server) team, party to finalize and prepare ECCS infrastructure and server architecture DEO, SAMA Digital Enterprise Operations team, party to review and approve SAMA Application-Infrastructure Design Network, SAMA Network, in charge of participating bank branches connectivity to ECCS application via SAMA network with adequate bandwidth allocated ESD, SAMA Enterprise System Development team, party that determine banks Check settlement and billing integration specification with Saudi Arabian Riyal Interbank Express (SARIE), Real-Time Gross Settlement (RTGS) system operated by SAMA via the SAP Core banking system. AD, Active Directory team, party responsible for allowing SAMA central bank and branches users access ECCS web portal through ADFS method eSAMA, electronic services portal team, party responsible for allowing participating bank access ECCS web portal through Nafath authentication method Exchange, Mail Exchange team, party responsible for allowing ECCS to send email through SAMA SMTP mail server CS, SAMA Cyber Security team, party to oversee and ensure ECCS complies with SAMA’s security standard, including VAPT testing for all environments TMO, SAMA Testing team, party in charge of ECCS system functionalities test and ensure system is conducted through performance test that can handle national normal day volume and peak day volume as defined by business team without failure

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Classification:
1.3 Acronyms and Abbreviations
1.3.1 The following terms – whenever they occur in these rules and regulations – shall have the meanings assigned thereto
unless the context requires otherwise:
No. Term Definition

1. Apparent alteration
   Anychanges madeto the printed and / or written data of the Check & authorized by mandate or otherwise
2. Archive
   A repository used to store Check images and associated information, including MICR line Data, UIC and other clearing information of items cleared in ECCS
3. Bitonal image
   An image where each pixel can be represented by single binary bit, either black or white
4. BusinessContinuity
   Theability of Participantstoensure uninterrupteddelivery ofservicesto customers and the ability to maintain operational viability before, after and during an unplanned business disruption 5. Business Continuity Management(BCM) An enterprise-wide risk management approach that includes policies, standards, and ensuringthat business operationscan be maintained or recovered in atimely fashion in the event of a disruption. Its purpose is to minimize the operational, financial, legal, reputational and other material consequences arising from a disruption
5. BusinessDay
   Unless otherwisespecified in Rules & Regulations forECCS, means any calendar day from Sunday to Thursday, except a public and bank holiday in KSA
6. BusinessHours
   Referring to the duration of time when SAMA clearing house provides ECCS services between the opening time and the cut-off time
7. Check
   A written order from one party (the drawer) to another (the drawee, normally a bank) requiring the drawee to pay a specific sum on demand to the drawer or a third party specified by the drawer
8. Check Truncation
   Is where the physical movement of the paper Check is replaced by the Check’s image and data for the purpose of debiting the Check issuer’s (drawer) account. This is where the paper Check does not move from the Presenting Bank to the Issuing Bank for the purpose of clearing
9. Clearing House
   The organization that collects, sorts, classifies and distributes information on checkclearingamongits Participants
10. Clearing Items
    Refer to Checks, government Checks, cashiers orders, that comply with the ECCS MICR linerequirements
11. CodeLine
    Refers to aset of fields printed in theclear band areaat the bottom ofa Checkto facilitateautomated datacapture

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Classification:
13. Comclient (eOCS)
Is a component for transmission of data and images captured at the scanner PC, to SAMA Clearing House
14. Drawer Refers to the party who issues a check
15. ECCS
The SAMA “eClearing System for Checks”, which is a system that provides clearing of Checks and other clearing instruments through Check Truncation.
16. Image
A digital representation of the front and back of the truncated Check or Clearing item
17. Inward Return
A Check, which the Issuing Bank rejects as unpaid, and the Check is received by the Presenting Bank with the applicable return reason through eOCS
18. Issuing Bank A bank on whom the Check is drawn
19.
Magnetic Ink Character
Recognition (MICR)
A technique of using special machine-readable characters by which the items (i.e.
Checks, cashiers order, government checks etc.) are read by machine for electronic processing. For this purpose, details such as Check digit, Check number, bank/branch code, account number, transaction code and amount are encoded in a special magnetic ink on the lower edge (5/8” clear band) of an item to be “read” by computer equipment
20. MICR line Data
The Magnetic Ink Character Recognition Code Line Data, which consists of Check digit, Check serial number, bank / branch code, the account number, the transaction code, and the amount 21. Non-conforming Flag (NCF) A Check with Apparent Alteration(s); A Check with amended check digit, Check serial number, bank / Branch code, account number, and / or transaction code field
22. Outward Return
A Check, which the Issuing Bank rejects as unpaid and returns to the Presenting Bank with the applicable return reason through eICS
23. Participants
Financial institutions or entities that subscribe to SAMA Check clearing services as a Presenting Bank and/or Issuing Bank
24. Payee The party named to which a Check is made payable
25. Presenting Bank A bank that collects a Check and sends for clearing or payment through ECCS
26. Post-dated Check A Check that is presented bearing a future date
27. Return Code
A return reason that indicates the return reason code for returning a Check as unpaid
28. Returned reason
Referring to a situation where a Check is returned by an Issuing Bank to the holder through the Presenting Bank for specified reason

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Classification:
29. Stale Check
A specific Check type that is presented with a date of issue that has exceeded the date issuance of the Check or as specified on the Check
30. Stopped Check
A check that has been returned unpaid due to payment being countermanded by order of the drawer or payment stopped by order of the drawer
31. Unique Identifier Code (UIC)
Is a unique reference number printed at the back of the Check by the Presenting Bank and is used for the following purposes:
as a Presenting Bank crossing; presenting of outward item; presenting of unpaid item; and retrieval of the Check or the image of the Check. No. Abbreviation Definition

1. KSA Kingdom of Saudi Arabia
2. SAMA Saudi Central Bank
3. ECCS eClearing System for Checks
4. GDBCC SAMA The Branches & Cash Centers General Department
5. EA SAMA Enterprise Architecture design team
6. DSD SAMA Digital Solution Design team
7. DCC SAMA Digital Compute & Cloud (Server) team
8. DEO SAMA Digital Enterprise Operations team
9. Network SAMA Network team
10. ESD SAMA Enterprise System Development team
11. AD SAMA Active Directory team
12. eSAMA SAMA electronic services portal team
13. Exchange SAMA Mail Exchange team
14. CS SAMA Cyber Security team
15. TMO SAMA Testing team
16. PMO SAMA Project Management team
17. SARIE Saudi Arabian Riyal Interbank Express
18. ACH Automated Clearing House System

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Classification:
19. CTS Check Truncation System
20. eOCS Electronic Outward Clearing System
21. eICS Electronic Inward Clearing System
22. SCS Storing & Clearing System
23. CTAS Check Truncation Archival System
24. NCF Non-Conforming Flag
25. MFA Multi-Factor Authentication
26. OTP One-Time Password
27. AD Active Directory
28. SIT System Integration Testing
29. ID Identification
30. CRUD Create, Read, Update, and Delete
31. UIC Unique Identification Code
32. IQA Image Quality Assurance
33. MICR Magnetic Ink Character Recognition Line
34. BIC Business Identifier Codes
35. CPU Central Processing Unit
36. RAM Random-Access Memory
37. HTTPS Secure Hypertext Transfer Protocol
38. REST Representational State Transfer
39. SOAP Simple Object Access Protocol
40. MTD Maximum Tolerable Downtime
41. RTO Recovery Time Objective
42. RPO Data Loss Tolerance
43. App Application
44. DB Database
45. PDF Portable Document Format

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Classification:
2 Scope
2.1 Scope/ Background
These Rules & Regulations apply to all clearing items that are eligible for clearing through ECCS. Participants are required to adhere to the processes and conditions stated in these Rules & Regulations operational manuals. Although these Rules & Regulations make a functional distinction between the different Check clearing roles, one entity may play several roles in the clearing of Checks and other instruments through ECCS. For example, many Participants exercise a dual role as a Presenting Bank as well as an Issuing Bank at the same time. These Rules & Regulations shall be binding on all Participants of ECCS, including their agents, if any.
2.2 Business Objective
2.2.1 These Rules & Regulations outline the process and workflow for the operation of the ECCS and serve as a guide for
participants of SAMA ECCS, to equip them with effective operating knowledge.
2.2.2 ECCS is intended to introduce a paperless Check clearing process, increase the efficiency of the clearing process and
settlement process and to further achieve acommon day hold throughout the Kingdom.
2.2.3 ECCS enables the clearing of Checks through image and data (truncation) and the movement of physical Checks and
other payment instruments between banksand between banks and theclearing housewill beeliminated.
2.2.4 These Rules & Regulations where applicable shall be read in conjunction with the following documents :
2.2.4.1 Negotiable instruments (Royal Decree No. 37 dated 11/10/1383) Bill ofExchange
2.2.4.2 Guidelines on Business ContinuityManagement for Participants ofSAMA ECCS ; and
2.2.4.3 Any othercirculars,standards,codes, notices, directivesissued bySAMA from time to time related to ECCS.
2.2.5 With effect from the Effective Date (determined and communicated) in accordance with the Rules & Regulations of
ECCS, shall replace the existing physical check clearing arrangement. These Rules and Regulations supersede and nullify all previous check clearing rules, procedures, and arrangements. In the event of an emergency that necessitates operating under the manual clearing process, the previously applicable manual clearing rules and procedures shall be followed to the extent required. These Rules shall come into force immediately upon issuance of the official circular and approval.
2.2.6 Accordingly, SAMA and each ECCS Participant agree that with effect from the Effective Date, these Rules & Regulations
shall commence to form a part of the governance framework of ECCS.
2.2.7 TheEffective Datereferred to in Clause.2.2.5 shall be:
2.2.7.1 A date determined by SAMA that is no earlier than ten (10) Business Days after all participants of ECCS
submitted theirrespectiveapplication, duly completed in accordance with Clause 2.2.5 and Communicated by SAMA via written notice to all ECCS Participants prior to the Effective Date.

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Classification:
2.3 The Business Proposed Solution
2.3.1 Implementation of eClearing System for Checks (ECCS) project is proposed to move current partially and manual
clearing system to fully digitalized electronic clearing system of Checks. The proposed solution designed in line with SAMA business objective and requirements, covering the following areas and benefits:
No. Requirements Benefits Description
1
Operational
Image and Data Capture

• High-quality capture of Check images and
  associated MICR (Magnetic Ink Character
  Recognition) data
  2 Exception Handling
• Robust workflows for handling image
  rejects, duplicates, or poor-quality scans
  3 System Integration
• Seamlessly Integrate with current SAMA
  infrastructure, application, and systems for the ECCS 4 Enhance Regulatory, Security Compliance
• Improving Check clearing practices and
  standardise Check clearing processes, operations, rules, and regulations without any conflict with existing Laws within KSA
• Meet international standards (Check 21
  Act) for data security and privacy
  5 Auditability
• Full audit trails tracking for compliance
  purposes
  6
  Market
  User Experience
• Easy and intuitive interfaces for both SAMA
  branches and bank employees
• Realtime processing, with fewer errors
  7
  Improving Customer
  Experience
• With ECCS new and improved value-added
  functionalities, it improves overall quality services to SAMA branches, participating bank and bank customers 8 Support Business Scalability
• Solution is scalable and capable to handle
  volumes growth
  9
  Environmental
  Paper Reduction
• Minimizing physical paper use through
  electronic clearing
  10 Energy Efficiency
• Optimize system architecture and data
  centers for lower energy consumption.
  11 E-Waste Management
• Ensure responsible lifecycle management
  of scanning hardware and storage devices.

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Classification:
12
Financial
Lowering Operational Costs &
Time

• Reduces time, and costs associated in labor
  on Check handling and transportation between SAMA and participating banks
• Eliminates cost of encoding machine, and
  ink, regional clearing house operations,
  Check sorter maintenance and other manual operations 13 Speed up Clearing and Settlement
• Presenting Checks on the same day for all
  regions of the Kingdom
• Reduce the time lag between presentation
  of a Check and realisation of proceeds across KSA
• Improve customer cash flow through faster
  funds availability and settlement
  14 Reducing Fraud Risk
• Reduces risk of loss, stolen and tampering
  Checks during transit
• Early detection through electronic
  processing
• Increase confidence in Checks as a
  fulfilment and payment tool
  3 Rules & Regulations of ECCS Checks Operation
  3.1 The following rules & regulations are to be adopted for ECCS Checks operation:
  Rule No. Actors / Task Rules & Regulations
  RSCS001
  Clearing House
  User - Common day Clearing
  (Business Day)
  Rule:
  ECCS shall be a same day clearing system, and all Participants must ensure all Checks submitted are cleared on the same business day the check is delivered by the customer. Regulation:
  Clearing house Users must be able to:

1. Set daily outward and inward clearing window timing as per KSA business
   operation
2. Extend or modify current clearing window timing whenever it is required
   RSCS002
   Clearing House
   User - Generate
   Settlement file
   Rule:
   Clearing House will Generate one (1) Settlement file for the whole Kingdom Regulation:
   Clearing House User is to process and ‘Generate Settlement’ files and sent to SARIE, connecting through Watheeq and Core Banking during this clearing window timing:
   Generate Settlement (15.00pm to 15.30pm)
   The key information in the file must include:

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Classification:
Rule No. Actors / Task Rules & Regulations

1. Bank Code
2. Net Settlement Amount
   RSCS003
   Clearing House
   User - Generate
   Billing file
   Rule:
   Clearing House will Generate one (1) Billing file per day and sent the Report through the ECCS to all Participants Regulation:
   Clearing House User is to process and ‘Generate Billing’ files and sent to SARIE, connecting through Watheeq and Core Banking. The key information in the file must include:
3. Bank Code
4. Billing Type
5. Billing Charges
   RSCS004
   Participants -
   Bilateral arrangements outside ECCS
   Rule:
   Clearing arrangements made between Participants outside of the ECCS Regulation:
   Any arrangements made outside of the ECCS between Presenting Bank & Issuing Bank shall be deemed as bilateral arrangements between the Participants(Issuing Bank & Presenting Bank) concerned and are notcovered bythe Rules & Regulations of ECCS ROCS001 Clearing House User - Clearing Window Outward Clearing Checks Rule:
   Presenting Bank to process Outward Clearing Checks via ECCS instead of sending to SAMA Branches Regulation:
   Presenting Bank is to capture & submit ‘Outward Clearing’ items during this clearing window timing:
   checks (from 00.00am to 13.00pm) shall be settled thesame day. checks (from 14.01pm to 23.59pm) shall be settled next business day . Key Information must include:
6. Check capturing
7. Check submission to SAMA clearing house
   ROCS002
   Presenting Bank
   User - Physical
   Check verification –
   NCF Tag
   Rule:
   Presenting Bank to perform physical Check verification before submitting the Check to ECCS. Any Checks that have any Alteration should be rejected and not submitted into ECCS. Refer to Section 7 – Type of Check Issuance not permitted under ECCS environment Regulation:
   Presenting Bank shall:
8. Employ all necessary measures to detect discrepancies such as apparent
   alterations listed as follows, during physical Check verification prior to scanning of

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Classification:
Rule No. Actors / Task Rules & Regulations
Check:
i. Use of thick felt pen on designated fields (including beneficiary name, date,
amount in figur

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