Latest news with #minimumbalance
Khaleej Times
5 days ago
- Business
- Khaleej Times
UAE: Minimum bank balance requirement of Dh5,000 suspended
The Central Bank of the UAE on Tuesday postponed its decision for a minimum balance requirement of Dh5,000 for retail customers of local banks. The regulator sent out a notice to all licensed financial institutions (LFIs) in the country, notifying them about postponing an increase in minimum balance amount from Dh3,000 to Dh5,000, industry sources told Khaleej Times. Last week, the Central Bank sent out a notice to local financial institutions about increasing the minimum balance from Dh3,000 to Dh5,000 from June 1, 2025. If customers, under the previously announced policy, failed to maintain the minimum balance of Dh5,000, they would be subject to a Dh25 fee per month, unless they have a credit card or personal financing with the lender. Central Bank asked local banks to suspend the increase in the minimum balance and not implement it until further notice as it aims to study the impact of this decision on the labour market. This new decision to postpone a minimum balance of Dh5,000 will greatly benefit lower middle-income employees who sometimes find it difficult to maintain the minimum balance amount. The UAE Central Bank's latest showed that banks' deposits increased by 1.2 per cent from Dh2.840 trillion at the end of January 2025 to Dh2.874 trillion at the end of February 2025. The increase in bank deposits was due to the growth in resident deposits by 0.8 per cent, settling at Dh2.625 trillion and in non-resident deposits by 5.1 per cent, reaching Dh249.1 billion. Within the resident deposits; government-related entities deposits increased by 3.8 per cent, private sector deposits increased by 1.4 per cent and non-banking financial institutions deposits increased by 5.6 per cent.
Khaleej Times
20-05-2025
- Business
- Khaleej Times
Some UAE banks to raise minimum balance requirement from June 1, report says
Several banks operating in the UAE are set to increase the minimum balance requirement to Dh5,000, up from the previous Dh3,000 threshold established under the Central Bank's personal loan regulations. The new requirement will take effect from June 1, with one bank having already implemented these charges recently. Customers who fail to maintain the minimum balance will face a fee of Dh25, according to the new guidelines. These banks have stipulated that customers must hold a credit card or personal financing to be exempted from the minimum balance fee of Dh25. A document obtained by Emarat Al Youm details that 'fees will be waived for customers maintaining a total balance of Dh20,000 or more, those with a monthly salary transfer of Dh15,000 or more, or customers with a monthly salary transfer between Dh5,000 and Dh14,999 who also have a credit card, overdraft facility, or loan.' The document further states that 'a fee of Dh25 will be imposed on customers with a monthly salary transfer between Dh5,000 and Dh14,999 without a credit card, overdraft facility, or loan, as well as those with salary transfers less than Dh5,000.' Additionally, 'all bank customers who do not fall under the above categories will be required to pay a fee of Dh100 or Dh105, depending on the account type.' It is worth noting that the personal loan regulations issued by the Central Bank, in effect since 2011, require a minimum balance of Dh3,000 to be exempt from a fee of only Dh25.
