Circular Regarding the Increase of the Maximum Limit in Paragraph (1) of Article (Twenty-Second) of the Rules for Regulating Buy-Now-Pay-Later (BNPL) Companies

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Saudi Central Bank Saudi Central Bank

Number: 472038475 Date: 04/07/1447 AH Attachments: None

Circular

To: Esteemed Gentlemen/Ladies Peace, mercy, and blessings of Allah be upon you,

Subject: Increasing the Maximum Limit Stipulated in Paragraph (1) of Article (Twenty-Second) of the Rules for Regulating Buy-Now-Pay-Later (BNPL) Companies.

Based on the powers vested in the Saudi Central Bank under the relevant regulations, and stemming from its supervisory and regulatory role over financial institutions subject to its supervision and control, and with reference to Paragraph (1) of Article (Twenty-Second) of the Rules for Regulating Buy-Now-Pay-Later (BNPL) Companies, which states: "Without prejudice to the affordability ratios specified in the Principles of Responsible Financing for Individuals, the total outstanding financing for each individual customer must not exceed (5,000) five thousand Saudi Riyals, and the Saudi Central Bank may increase or decrease this amount as it deems appropriate."

We inform you that it has been decided to increase the maximum limit for the total outstanding financing for each individual customer in the Buy-Now-Pay-Later activity, to become no more than (10,000) ten thousand Saudi Riyals, while emphasizing compliance with the relevant regulatory provisions and requirements.

For your information and attention.

Sincerely,

[Signature] Yazeed bin Ahmed Al-Sheikh Deputy Governor for Supervision

Distribution Scope:

• Banks operating in the Kingdom.
• Finance companies operating in the Kingdom.
• Buy-Now-Pay-Later companies operating in the Kingdom.

P.O. Box 2992 Riyadh 11169, Kingdom of Saudi Arabia Tel: +966 11 463 3000