RIYADH — The Saudi Central Bank (SCB) announced on Thursday the launch of the instant payments system effective from Feb. 21, and this is after the successful launch of the first phase of trial to activate the system with a number of Saudi local banks. The launch of the system will enable financial institutions, companies and individuals to complete instant transfers among various banks within 24 hours, and throughout all days of the week. The Central Bank stated that the system, developed by the Saudi Payments, a wholly owned subsidiary of SCB, will enhance economic development by increasing the effectiveness of financial transactions between all parties in the corporate and retail sectors, and enable banking institutions and financial technology companies to improve current financial products, and manage cash flows for the business sector. It will also contribute to increasing transparency in payments between companies and individuals, activating innovation in financial services, as well as raising the quality of services provided to the final beneficiaries. The SCB statement emphasized that the system works seamlessly between Saudi banks and financial technology companies, and contributes to reducing operational costs and providing innovative solutions to the financial sector. Once activated, it will allow beneficiaries to benefit from it in the implementation of financial transfers between accounts in local banks immediately, with fees less than the fee charged in current system of transfers between banks.
