Ashik Islam, special correspondent: Circulating reports claim some banks may raise minimum balance requirement to Dh5,000
Central Bank explicitly addressed recent reports indicating that several major banks were preparing to raise the minimum required balance from Dh 3,000 to Dh 5,000, starting June 1.
Central Bank of the UAE
In a significant move, the Central Bank of the UAE (CBUAE) has directed all banks operating within the nation to halt any impending increases to the minimum balance requirement for personal accounts. This directive comes as the CBUAE undertakes a formal review to assess the policy’s potential impact on consumers.
A circular obtained by Emarat Al Youm reveals that the CBUAE specifically addressed recent reports detailing plans by several major banks to raise the minimum required balance from Dh3,000 to Dh5,000, effective June 1. Such a change would have resulted in monthly fees of up to Dh105 for non-compliant customers. It was also noted that at least one prominent financial institution had already implemented this increase.
“In response to recent media and social platform discussions regarding some banks’ plans to raise the minimum balance to Dh5,000, the Central Bank has opted to assess the impact of such an increase on customers. Consequently, banks are directed to postpone this increase and refrain from implementing it until further notice.”
Multiple media reports
The decision follows Emarat Al Youm’s earlier report that several major banks had planned to implement the new Dh5,000 threshold starting June 1, in line with updates to Central Bank regulations. One leading bank had already enacted the change, with others expected to follow suit in the coming weeks.
The proposed fee hike sparked widespread public outcry, with account holders expressing concern about the financial strain on lower-income residents and small businesses.
The now-halted policy would have imposed a Dh25 monthly fee on customers failing to maintain a Dh5,000 balance in their current accounts. Exemptions included a monthly salary transfer of at least Dh15,000, an aggregate account balance of Dh20,000 or more, or an active credit card, overdraft, or loan with the bank.
Customers with monthly salaries below Dh5,000 and no qualifying banking products would have been automatically charged the fee, with some banks reportedly planning to increase the penalty to Dh 100 or more, depending on the account type.
