In a bold step, the United Arab Emirates’ Central Bank of the United Arab Emirates (CBUAE) has directed all banks to put on hold the proposed hike in the minimum balance requirement of individual accounts from Dh3,000 to Dh5,000. The directive was made amid public outcry and is intended to evaluate the probable effect on consumers, especially those who have low incomes.
A number of banks had indicated plans to introduce the new minimum balance requirement from June 1, 2025. With the new changes, customers with less than the Dh5,000 balance would have incurred monthly charges, with some banks planning to charge as much as Dh105, unless specific exemption conditions were satisfied.
The Central Bank’s move to suspend the hike is a demonstration of its dedication to protecting consumers and securing financial stability. By delaying the enforcement, the CBUAE wants to carry out a rigorous examination of the intended policy’s effects on the labor market as well as the overall economy.
This suspension comes as a relief to numerous account holders who were worried about the extra financial burden. The Central Bank has not announced a new date for the possible implementation of the higher minimum balance requirement, meaning that banks should avoid implementing the changes until notified further.
