The Central Bank of the United Arab Emirates has directed all banks within the country to postpone any intended increases to the minimum balance requirements for personal accounts, pending a comprehensive review of the policy’s potential impact on consumers.
This directive follows reports that several major banks were preparing to raise the minimum required balance from AED 3,000 to AED 5,000, effective from June 1. At least one leading bank had already implemented this change, which would have subjected customers failing to maintain the new minimum to monthly fees of up to AED 105.
In a circular obtained by Emarat Al Youm, the Central Bank stated: “With reference to what has been circulated in the media and social platforms about some banks’ intention to raise the minimum balance to AED 5,000, the Central Bank has decided to study the impact of this increase on customers. Accordingly, banks are instructed to suspend the increase and refrain from applying it until further notice.”
The proposed increase had sparked widespread public concern, particularly among lower-income residents and small business owners, who feared the additional financial burden. Under the now-paused policy, customers who did not maintain a AED 5,000 balance in their current accounts would have been charged a monthly fee of AED 25, unless they met specific exemption criteria. These exemptions included transferring a salary of at least AED 15,000 per month, maintaining a total account balance of AED 20,000 or more, or holding an active credit card, overdraft, or loan with the bank.
