Preparedness of Banks to Receive Requests from Gas Station Operators and Service Centers to Provide POS Terminals Connected via the National Payment System (Mada)

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

Saudi Central Bank Headquarters

Banking Policy Department Reference No.: Enclosures: None Date: 1440/07/28 AH Enclosures: None

Circular

To: Peace, mercy and blessings of Allah be upon you,

Subject: Preparedness of Banks to Receive Requests from Gas Station Operators and Their Service Centers to Provide POS Services via the National Payment System (Mada).

Please be informed that the Bank has collaborated with the Ministry of Commerce and Investment and the Ministry of Municipal, Rural Affairs and Housing to reach a decision obligating all gas stations in the Kingdom and their affiliated service centers to provide POS services via the National Payment System (Mada), effective from Sunday, 1440/11/11 AH.

I wish to emphasize the importance of this decision and its alignment with the Bank's general strategies aimed at enhancing financial inclusion and reducing cash transactions to achieve the objectives of Saudi Vision 2030.

To ensure the success of efforts to activate this decision and guarantee the banking sector's readiness to cope with the expected volume of requests, banks must verify the following:

First: Readiness to receive requests for opening bank accounts for gas station owners and their affiliated service centers, and prompt response to them. Second: Readiness to receive requests for providing POS terminals and responding to them through the Bank's various channels such as branches, internet banking, and telephone banking to facilitate this requirement for gas station operators and their service centers, while adhering to the specified maintenance periods as stipulated in the Mada standards document and service level agreements. Third: Restricting the use of the discounted pricing model for gas stations, as outlined in the Bank's instructions issued under Circular No. 361000111820 dated 1436/8/18 AH, to fuel sales services only, and not using it for any other gas station-related services. Fourth: Circulating this decision internally to Bank/Staff members to ensure their adequate understanding when receiving related requests and inquiries.

For information, action, and notification to all concerned departments and branches.

Yours sincerely,

Fahd bin Ibrahim Al-Shathri Deputy Governor for Supervision

Distribution Scope:

• Banks and financial institutions operating in the Kingdom.

P.O. Box 2992, Riyadh 11169, Telegram: MARKAZI, Telex: 404400, Tel: 4633000, Fax: 4662414