Is the Dh5,000 minimum bank balance rule still active in the UAE?
Central Bank decision offers relief to lower-income workers across the Emirates
DUBAI: The Central Bank of the UAE has ordered all local financial institutions to suspend the planned hike in minimum bank balance for personal accounts.
Originally set to take effect on 1 June 2025, the proposed increase from Dh3,000 to Dh5,000 has now been put on hold until further notice.
The directive comes after the regulator received reports of some major banks preparing to apply the updated rule, with at least one institution already enforcing the change. Affected customers would have faced monthly charges starting from Dh25 if they failed to meet the new minimum – unless they met exemption conditions such as holding a credit card, loan, or salary transfer arrangement.
Public response
Reports in local media suggest the proposed increase prompted widespread concern among lower-income residents, including blue-collar workers and small business owners.
The potential fee structure sparked criticism on social platforms and in the media, where many expressed concerns over affordability. In some cases, customers could have faced charges of up to Dh105 monthly, depending on their bank and account type.
Regulator’s review
In a circular distributed to licensed financial institutions, the Central Bank clarified that the decision to pause the implementation was taken to allow time to study the impact of the proposed change on the labour market.
Recent banking data shows a strong sector. Total deposits rose 1.2 percent from Dh2.840 trillion in January to Dh2.874 trillion by February 2025. Resident deposits grew 0.8 percent, reaching Dh2.625 trillion, while non-resident deposits surged 5.1 percent to Dh249.1 billion. Notably, deposits by government-related entities increased 3.8 percent, private sector deposits rose 1.4 percent, and non-banking financial institutions grew their deposits by 5.6 percent.
What’s the timeline?
No revised date has been confirmed for reintroducing the Dh5,000 minimum requirement. Banks have been instructed not to proceed with any related changes until further guidance is issued.