Emphasis on the Obligation to Replace Damaged Saudi Banknotes

Saudi Central Bank
Reference No.: 45013614
Date: 1445/02/27
Attachments: None

Circular

To: Respected Banks,

Peace, mercy, and blessings of God be upon you, Subject: Emphasis on the Obligation to Replace Damaged Saudi Banknotes.

In continuation of the Saudi Central Bank instructions communicated via Circular No. (42015322) dated 1442/03/11H, regarding the mandate for banks and financial institutions to receive and replace damaged banknotes from beneficiaries after verifying their authenticity, and emphasizing the necessity for banks and financial institutions to provide sound banknotes suitable for circulation, and in light of the Saudi Central Bank's commitment to withdrawing unsuitable banknotes from circulation, the Saudi Central Bank emphasizes the obligation to replace all denominations according to the specified mechanism for accepting and compensating damaged banknotes submitted by beneficiaries, as follows:

1. They must be among the circulating Saudi currency issuances, and the replaced banknote must have clear features, with an area not less than 60% of the original note's size.
2. Both signatures (Minister of Finance and Governor of the Saudi Central Bank) or both serial numbers must not be completely missing.
3. They must not be damaged due to intentional causes, or pasted with parts of different banknotes.
4. Damaged banknotes must be presented to one of the Saudi Central Bank branches by their holder in the following two cases:
   a. Lack of clarity in the banknote's features due to exposure to fire or other factors such as abrasion, washing, or exposure to chemical substances or security inks. b. In cases where the compensation amount exceeds ten thousand Saudi Riyals.

Therefore, we confirm that all branches of banks and financial institutions and currency exchange centers circulate sound currency and withdraw damaged and unsuitable banknotes, coordinating with the Saudi Central Bank branches for their deposit. Please note that the Saudi Central Bank will monitor banks' and financial institutions' compliance with applying the aforementioned procedures for replacing damaged banknotes, and will take regulatory actions in case of non-compliance. It is further confirmed that the instructions contained in this circular supersede the previous instructions communicated in the aforementioned Circular No. (42015322) dated 1442/03/11H regarding the replacement of damaged Saudi banknotes.

For information and necessary action.
(Signature)

Yours faithfully,
Yazeed bin Ahmed Al-Sheikh
Deputy Governor for Supervision

Distribution Scope:

• Banks and financial institutions operating in the Kingdom.

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