SAMA seeks public input on draft savings products rules

Logo of Saudi Central Bank (SAMA)

The Saudi Central Bank (SAMA) invited feedback from stakeholders and the public on the draft general rules for savings products via the Istitlaa platform. 

In a statement, the central bank pointed out that the draft aims to create a general framework for savings products provided by banks, encouraging banks to offer savings products and stimulate customers to benefit from them. It also aims to encourage and enable financial planning in society. 

Public consultation on the draft law will be open for 30 days. 

All views and comments will be subject to assessment to submit the final draft to the regulatory authority. 

The project includes a number of provisions that banks and financial institutions must take into account regarding savings products, starting from their design and development, through advertising and disclosure, to their presentation and management. 

When designing and developing savings products, the bank must adhere to the quality of the product design and the principle of disclosure and transparency in its presentation and delivery. 

Banks also have to continuously evaluate the effectiveness and risks of the product according to specific performance indicators. 

Transparency, clarity and accuracy of information in all product documents, including the agreement and initial disclosure, must also be taken into account. 

Moreover, banks must provide flexibility in conditions for customers to enable them to obtain and benefit from the product.  

All the above-mentioned criteria must be provided through digital channels, without requiring the customer to have or open a current account. This excludes products whose delivery mechanism requires this, such as products that include automatic deductions. 

 The products should cover different categories of customers, including those with low financial income, resident foreigners, and those under the age of 18. 

According to the draft, the bank must prioritize saving products while developing its products, taking into account the best local and international standards and practices. 

Moreover, the bank must prioritize saving products during promotional advertisements, in addition to allocating a window to be displayed on the bank’s website and electronic application that includes - as a minimum - the characteristics of each product, conditions for benefiting from it, and frequently asked questions, in addition to the constant review of such window to ensure that the information is up to date.