The Central Bank of the UAE on Tuesday asked banks not to increase the minimum balance requirement from Dh3,000 to Dh5,000 for retail customers.
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
Last week, several banks reportedly announced that they would increase the minimum balance requirement to Dh5,000, up from the current Dh3,000 threshold established under the Central Bank’s personal loan regulations.
Central Bank asked local banks not to implement increase until further notice as it aims to study the impact of this decision on the labour market.
This new decision will 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.
