Document background
The Letter of Authorization to Debit Account is a critical banking instrument in Saudi Arabia used to establish and maintain automated payment arrangements between account holders and service providers or creditors. This document, regulated by the Saudi Central Bank (SAMA), provides banks with the legal authority to process recurring or one-time debits from a customer's account. It's commonly used for various purposes including loan repayments, utility bill payments, insurance premiums, and other recurring financial obligations. The authorization typically includes specific details about the account holder, bank account information, debit parameters, and validity period. This document is essential for both individual and corporate banking relationships in Saudi Arabia, providing a secure and efficient method for managing regular payment obligations while ensuring compliance with local banking regulations.
