No back-dated effect for new bank charges

Bankers said a ceiling put on charges and commissions charged will not affect the quality of service. (FILE)

Published Sunday, March 13, 2011

By Staff

The new schedule of charges for personal loans, fees and commissions, will be applicable only to new issuances and not with any back-dated effect.

An official source at the UAE’s Central Bank was quoted by Arabic daily Al Emarat Al Youm as saying: “The new charges will be applied to all without distinction between citizens and residents.

This will be applicable one month after the date of its publication in the Official Gazette.”

He also added: “We have observed that some banks offer their services and products at prices below the limits established by the Central Bank.”

Meanwhile, bankers said a ceiling put on charges and commissions charged will not affect the quality of service.

On the other hand, bankers told Emarat Al Youm that they have not yet received any circulars from the Central Bank on the new schedule of charges.

They asked for time to implement the new system, which requires modifications of systems as well as training for bank staff.

Some have suggested the Central Bank postpone publication in the Official Gazette, to give them time to commit themselves to implementing the resolution.

Some of the new fees for bank transactions are as follows:

For opening new account – none

If balance is less than the minimum “monthly” - Dh25

Non-arrival of salary - none

Closure of account (if closed within one year of opening) - Dh100

Lack of sufficient credit in the account - Dh25

Issuing certificate of account balance - Dh50

Issuing clearance certificate - Dh50

Non-moving accounts - no charges

Teller transactions at branch (6 transactions monthly free) - Dh10 for each additional transactions

For cash withdrawal or deposit - none

Postpone the payment of the loan – Dh100 for each time