Regulation on Branch Network

All applications for obtaining a license for opening new branches shall be submitted along with relevant information including, inter alia: a) The exact location of the branch; b) The safety and security arrangements for the branch and the customers (including arrangements for the elderly and disabled customers); c) The status of IT infrastructure/connectivity; d) The proposed staffing arrangements; e) The status of approvals from relevant government authorities; f) Certificate of compliance with the municipality regulations, etc.; g) A certificate from the internal audit department of the bank confirming that the new branch complies with all relevant requirements of the government authorities and SAMA. 7.4 Once SAMA issues a formal license for opening a branch, the bank will take all necessary measures to make the branch operational within six months of the date of issuance of the license and ensure compliance of all conditions of the branch license. 7.5 Banks shall inform SAMA in writing within 14 calendar days of commencement of operations by a new branch. 8. Closure of Branches 8.1 Banks will seek prior approval of SAMA for the closure or relocation of a branch or service center. Furthermore, in case of any forced closure/relocation of a branch, service or remittance center due to circumstances beyond their control, banks will notify all such cases to SAMA along with the reasons thereof. 8.2 Banks will have the flexibility to plan for closure or relocation of branches and service centers or convert a branch to a service center in Zone 1 and 2. However, any such request for closure or relocation will be allowed by SAMA subject to the condition that the bank has taken necessary measures to promote the use of digital modes. 8.3 Closure of branches or service centers in Zones 3 and 4 (priority areas) will not be allowed but their relocation within the same city/governorate will be permissible. 8.4 Banks will be allowed to merge two nearby branches in case of merger of two banks or in other justifiable cases subject to the condition that there remains a branch of the same bank within the distance of 10 kilometers. 8.5 Banks will not terminate the services of any employee merely due to the closure or relocation of a branch or service center. 8.6 Banks will be free to close and/or relocate remittance centers as per their approved Branch Network Policy. However, they will be required to notify SAMA at-least 30 calendar days before any such closure or relocation of a remittance center. 9. Communication to Customers 9.1 Banks will be required to inform customers through SMS and Email at-least two months before closure or relocation of any branch, service center or remittance center. 9.2 Banks will place a notification on the bank's website as well as on the branch site/entrance with contact numbers for seeking further information; 9.3 The communication from bank shall guide the customers about alternate options for them for availing the banking services. This will, inter alia, include information about the nearest branch of the bank, service center or other available channels. 10. Submission of Returns Banks will submit the following returns to SAMA on quarterly basis within 30 calendar days of the end of each calendar quarter: 10.1 Data on opening, closing and relocation of branches, service and remittance centers (as per format attached as Annexure-I ). 10.2 Data on delivery channels used to serve the customers (as per format attached as Annexure-ll ).