Saudi Arabian Monetary Agency (SAMA), the Saudi central bank, has tightened restrictions on cash withdrawals using credit card from banks, in a bid to head off consumer debt issues.

Earlier, customers were allowed to secure cash advances equivalent to as much as 50% of their monthly credit card spending limits under an informal industry arrangement, and had to pay heavy fees to do so, reported Reuters.

The new rules, aimed at protecting cardholders and introducing international best practice, imposes an official ceiling of 30%.

In 2014, SAMA also published new consumer lending rules, which empowered it to cap retail lending at individual banks as well as limit fees charged by banks.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.