UAE central bank halts plan to raise minimum balance requirement

With many residents worried about rising banking costs, the UAE Central Bank has stepped in to pause a planned increase in the minimum balance requirement for personal accounts.

The decision will remain in place while the regulator conducts a thorough assessment of the proposed changes and their potential impact on customers, Gulf Newsreported.

According to a circular obtained by Emarat Al Youm, the Central Bank responded to reports that several prominent banks were preparing to raise the minimum account balance from AED 3,000 to AED 5,000 as of June 1. The change would have triggered monthly charges of up to AED 105 for customers failing to meet the new threshold. At least one major bank had already begun implementing the new policy.

“In light of recent discussions in the media and on social networks about certain banks planning to increase the minimum balance to AED 5,000, the Central Bank has decided to evaluate the effects of such an increase on consumers,” the directive stated. “As a result, banks are instructed to halt the implementation of this change until further notice.”

This move follows earlier reports from Emarat Al Youm that several leading banks intended to roll out the new minimum balance rule starting June, aligning with recent regulatory updates. Public backlash quickly followed, with customers expressing concern over the added financial pressure especially on low-income individuals and small businesses.

Under the now-suspended policy, account holders who failed to maintain a minimum balance of AED 5,000 would have faced a monthly fee of AED 25, unless they qualified for exemptions. These included transferring a monthly salary of AED 15,000 or more, maintaining a total balance of at least AED 20,000 across accounts, or holding an active loan, credit card, or overdraft facility.

Those earning less than AED 5,000 per month and without eligible banking products would have automatically incurred the fee. Some banks were reportedly considering raising the penalty to over AED 100 based on account type.