Dubai : In a significant consumer-focused move, the Central Bank of the UAE has directed all banks operating within the country to suspend any planned increases to the minimum balance requirements for personal bank accounts, pending a comprehensive policy review.
The directive, issued via an official circular and obtained by Emarat Al Youm, comes in response to reports that several major banks were preparing to raise the minimum balance threshold from AED 3,000 to AED 5,000 starting June 1. The proposed change, already implemented by at least one prominent institution, would have triggered monthly penalties of up to AED 105 for non-compliance.
“In light of what has been circulated in the media and on social platforms regarding banks’ intention to increase the minimum balance requirement to AED 5,000, the Central Bank has decided to evaluate the potential impact on customers,” the circular stated. “Accordingly, banks are instructed to suspend any such increase and refrain from implementing it until further notice.”
Public Outcry and Media Reports
The Central Bank’s move follows a wave of public criticism after Emarat Al Youm and other outlets reported on the upcoming policy changes. Many consumers voiced concerns about the financial strain the increase could place on lower-income residents and small business owners.
Under the now-paused plan, customers who failed to maintain the AED 5,000 minimum balance would have faced a monthly fee of AED 25, unless they met specific exemption criteria—such as earning a monthly salary of at least AED 15,000, maintaining a total account balance of AED 20,000 or more, or holding an active loan, credit card, or overdraft with the bank.
Without meeting these exemptions, customers—particularly those earning less than AED 5,000 monthly—would have automatically incurred the fees, with some banks reportedly considering even steeper penalties of AED 100 or more based on account type.
The Central Bank’s intervention reflects a broader commitment to financial inclusivity and protecting consumers from undue burdens, especially amid rising living costs. Further updates are expected following the completion of the policy impact assessment.
