Saudi Arabia orders banks and exchange firms to enhance the condition of circulating banknotes

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Stricter sorting and processing standards to be introduced under a phased timetable.

Saudi Central Bank (SAMA) has instructed all banks, cash centres, and exchange houses operating in the Kingdom to enhance the quality of Saudi banknotes in circulation by adopting stricter sorting and processing standards under a phased timetable.

Under the directive, institutions will begin sorting sixth-edition banknotes in the 50, 100, 200, and 500-riyal denominations from July 14, 2026, while 5, 10, and 20-riyal notes will be brought under the new procedures from November 15, 2026.

Saudi Central Bank (SAMA) said financial institutions must ensure that all cash-counting and sorting machines comply with prescribed technical requirements and are properly programmed to improve the quality of currency in circulation within the Kingdom.

The central bank classified banknotes into four categories: fit for circulation, fit for circulation with minor defects, unfit for circulation despite minor defects, and unfit for circulation.

The new standards require banknotes to be free from excessive dirt, large stains exceeding 15 x 15 millimetres, writing or drawings, and identifying marks. Notes with large holes, tears, missing portions, folds, or adhesive tape must also be withdrawn from circulation.

Saudi Central Bank (SAMA) said it will oversee implementation by continuously assessing the condition of currency in circulation, monitoring the volume of unfit banknotes being destroyed, verifying the programming of sorting machines, and ensuring full compliance with the new standards.

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