Dubai:The Central Bank of the UAE on Tuesday postponed its decision for a minimum balance requirement of Dh5,000 for retail customers of local banks.The regulator sent out a notice to all licensed financial institutions (LFIs) in the country, notifying them about postponing an increase in minimum balance amount from Dh3,000 to Dh5,000, industry sources told Khaleej Times.
Last week, the Central Bank sent out a notice to local financial institutions about increasing the minimum balance from Dh3,000 to Dh5,000 from June 1, 2025.If customers, under the previously announced policy, failed to maintain the minimum balance of Dh5,000, they would be subject to a Dh25 fee per month, unless they have a credit card or personal financing with the lender.
Central Bank asked local banks to suspend the increase in the minimum balance and not implement it until further notice as it aims to study the impact of this decision on the labour market.
This new decision to postpone a minimum balance of Dh5,000 will greatly benefit lower middle-income employees who sometimes find it difficult to maintain the minimum balance amount.
The UAE Central Bank’s latest showed that banks’ deposits increased by 1.2 per cent from Dh2.840 trillion at the end of January 2025 to Dh2.874 trillion at the end of February 2025. The increase in bank deposits was due to the growth in resident deposits by 0.8 per cent, settling at Dh2.625 trillion and in non-resident deposits by 5.1 per cent, reaching Dh249.1 billion.
Within the resident deposits; government-related entities deposits increased by 3.8 per cent, private sector deposits increased by 1.4 per cent and non-banking financial institutions deposits increased by 5.6 per cent.
