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.
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