Picture for illustrative purposes only. ARCHIVE

The Central Bank of the UAE (CBUAE) has instructed all licensed financial institutions in the country to halt the implementation of the planned increase in minimum bank balance requirements for current accounts. Several banks had announced plans to raise the minimum balance from Dh3,000 to Dh5,000 beginning June 1. However, in a recent directive sent to banks, the Central Bank asked them to postpone the increase “until further notice” as it continues to study the potential impact of the move on the labour market. The increase, if implemented, would affect thousands of customers, especially lower middle-income earners, who may face monthly charges of Dh25 to Dh105 if they fail to maintain the new balance threshold. Many banks had set conditions to waive these fees, such as maintaining a Dh20,000 total balance, a Dh15,000 monthly salary transfer, or holding active loans or credit cards. This decision offers temporary relief for residents struggling to meet the current Dh3,000 threshold, especially those earning less than Dh5,000 a month. ICA/Expat Media
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