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Under Circular No. 472038007 dated 02/07/1447H (corresponding to 22 December 2025), the Saudi Central Bank has prohibited banks, finance companies and money exchangers from obtaining promissory notes or similar instruments from retail customers at the point of credit card application.
The prohibition took effect on 1 February 2026 and is issued pursuant to SAMA's Responsible Financing Principles for Individuals.
Remediation requirements
Regulated entities must:
- submit a corrective plan to SAMA within 30 days; and
- complete implementation, including the cancellation or return of existing promissory notes, within six months.
Why this matters
This is a targeted intervention addressing a specific market practice. It reflects SAMA's willingness to act where documentation structures create disproportionate enforcement leverage against retail customers.
Next steps
Entities should:
- immediately cease use of promissory notes in onboarding processes;
- review existing portfolios and exposure; and
- implement remediation plans within the prescribed timelines.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
