The Saudi Arabian Riyal Interbank Express (SARIE) system commenced operation in May 1997, providing a mechanism for all to make and settle payments in Saudi banks using Saudi riyals. SARIE is the basis for improved banking products and services and is the foundation for national payments system strategy. It enables banks to safely and efficiently exchange funds transfer and direct debit messages on behalf of their customers as well as for their own trading purposes. SARIE system, designed on the concept of Real Time Gross Settlement (RTGS), is the backbone for a number of advanced and sophisticated payment and settlement systems already in place. These include: Automated Clearing Houses (ACH) - an electronic check clearing system; the Saudi Payments Network (SPAN) which links all ATM and Points of sale (POS) terminals; the Electronic Securities System (Tadawul); and the Electronic Bill Presentment & Payment (EBPP-SADAD). SARIE features: • Automated Clearing Houses (ACH), an electronic check clearing system; • Saudi Payments Network (SPAN) which links all ATM and EFTPOS terminals, • Electronic Securities System (Tadawul); • Electronic Bill Presentment & Payment (EBPP-SADAD). SARIE System is comprehensive, providing participants immediate financial transfer facilities in Saudi riyal through their accounts with SAMA. It also operates 24/7 ensuring non-repudiation of payment completion, giving participants easy access to their accounts with SAMA and to monitor and control their financial positions. SARIE provides operating characteristics in a variety of ways: • First, reducing the liquidity requirements for funds transfer. • Secondly, reducing the time taken to complete funds transfer. • Thirdly, enabling banks to control and use liquidity more effectively by allowing financial positions and liquidity management on a continuous basis. • Finally, the disposal of paper-based processes and procedures that had been used previously is a benefit for all. Standard for Money Transfer SARIE system is designed also to facilitate internal remittances. By recognizing the importance of international financial transactions, SARIE is designed to be consistent with existing international standards of financial transfers across borders. For example, SARIE's messages are formatted in accordance with the SWIFT international standards. Forward Payments One of the main features of SARIE system is its ability to apply maturing forward payments in a single process. Moreover, it could process high-value transactions, bulk payments and debit requests. In particular, the system is capable of settling interbank, payroll and periodic payments such as billing invoices of utilities services. Total Netting for Clearing Settlements The SARIE system combines all settlement results of clearing systems such as: • Saudi payments network (SPAN), • Saudi stock market (Tadawul), • Automated Clearing House (ACH), • Other clearing houses into one clearing network payment. This settlement is applied to participants' accounts with SAMA, which reduces risks associated with different net settlements arising from varying clearing systems. Bank Transfer Services Money transfers between banks and their clients were done using traditional methods like telex transfer and checks or even carrying actual cash. Now, with SARIE, all banks payment systems are interconnected, enabling clients to transfer money to and from any bank account within Saudi Arabia automatically, easily, safely and quickly. Monthly Payroll System Salaries used to be paid by issuing checks or cash. Now, with SARIE, government and commercial institutions could settle monthly salaries automatically. In this system, the salary is transferred from the government sector or the company owner to the recipient's individual bank account. That eliminates the need to personally visit the banks, in addition to enjoying the benefits of the Saudi Payments Network. Direct Debit Service Paying monthly bills and installments is one of the main reasons for crowded banks and long queues, which leads to an increased burden on clients and bank employees. Now, with SARIE, those payments can be settled by the client without the need to visit the bank because SARIE allows any bank to issue a credit note against the client's accounts and transfer the money to the beneficiary's account at any bank in the Kingdom. An upper limit to the regular payment deduction is set by the clients. All of the previously described SARIE services are offered at competitive prices, and to fully benefit from those services, please get in touch with any bank branch. Interbank Payments An Interbank Payment is used when the remitter and the beneficiary are participants - non-resident banks, or SAMA. Mostly these payments are purely for special banking activities. Customers Payments A Customer Payment is used when either the remitter or the beneficiary or both is not a participant, a non-resident bank, or SAMA. Single Payment Single Payments are each limited to one payment transaction between the participants and not the netted effect of more than one payment. Single payments can be customer or interbank, same-day or forward value messages. Bulk Payments Bulk Payments are multiple payment instructions sharing the same type and maturity date (value date), often with same nature and for specific purpose. Bulk payments can be either interbank or customer, same-day or forward value dated messages, but may not be a mix of these. Same Day Payments Same day payments are payments that are to be settled immediately upon receipt by the SARIE system throughout the same business day (value date). Forward Payments Forward Payments are those to be applied on a value date ahead of the current value date. Payments may be up to 14 days forward of entry day. The forward value date must be a valid SARIE business day. Direct Debit Payments Direct Debit Payments are forward payments in which the beneficiary (originator) is the message sender and the receiver's (payer's) account is debited directly if there are sufficient funds to cover the payment. These payments are usually used to collect amounts due from payers or to pay utility bills and transfer funds through the SARIE system to the originator's bank account with no need for the payer visiting his bank. For more information, refer to the Direct Debit Scheme Manual. Benefits of Using SARIE in Payroll • Speed and assurance of salary access. • Availability to access salary and inquire on balance in the account over 24 hours via ATM (SPAN) deployed throughout the Kingdom, without being limited by the official working hours of banks. • Salary can be cashed even from outside the Kingdom by using the Saudi payment network cards. • Does not require attendance or queuing in banks to collect salary. • Quicker and more reliable detection of errors in payment details. • According to Ministry of Finance's instructions, using the payroll service will not add any extra charges on employees. Direct Debit A Direct Debit is an arrangement between a customer, his bank and the organization with which he has a contract, to collect amounts due from the customer in an efficient and cost-effective manner. Direct Debit is acknowledged as one of the most cost-effective methods of bill collection available. This method eliminates the need to visit banks on a regular basis while the bank will take care of the amounts due, as agreed. SARIE System's Business Cycle The SARIE system operates 24 hours a day throughout the year, stopping only on holidays and Fridays. The SARIE system receives payments each morning from nine in the morning until four in the afternoon. Those received payments, with exception of forward payments, will reach the beneficiaries on the same value date regardless of their distribution over operational cycle's schedule. __
