UAE Central Bank Raises Instant Bank Transfers to AED 50,000 Effective Nov. 1
The Central Bank of the UAE has given the green light to banks to double the cap for instantaneous financial transfers between local bank accounts to AED 50,000 starting from November 1st.
The Central Bank's Decision, Effective November 1st
This significant increase replaces the previous limit of AED 25,000. Amounts exceeding AED 50,000 will now take one working day for processing, according to a reliable source in the banking sector.
Phased Implementation by Banks
While some banks have opted for a phased implementation of this decision, others have embraced the change entirely, allowing customers to perform instantaneous transfers locally up to AED 50,000.
Multiple Transfers Within the Day
Customers are now empowered to execute multiple transfers throughout the day, each capped at AED 50,000, highlighting the flexibility of the new system.
Consistent Transfer Fees, Some Waived
The majority of banks have chosen to maintain the existing transfer fees, ranging from half a dirham to one dirham. However, a few banks have increased the fee to one and a half dirhams. Notably, some banks have taken the initiative to absorb the fee hike, aligning with the Central Bank's push for increased online transactions.
Central Bank's Digital Transformation
The Central Bank's decision aligns with the ongoing digital transformation in the banking sector, keeping pace with the dynamic and fast-paced financial and business landscape in the Emirates. The move is seen as a strategic response to the growing popularity of quick and secure electronic transfers over traditional methods.
Smart applications and 24/7 accessibility
Financial transfers through smart applications provided by banks are available 24/7, offering customers a convenient, secure, and swift alternative to traditional banking transactions. The fees for these electronic transfers are notably lower compared to other transfer methods.
Encouraging Quick Services
The source emphasized that the Central Bank's decisions are in harmony with the banking sector's shift towards digital services. The move not only meets customer demands for swift services but also encourages the adoption of online transfers. Traditional methods, such as transfers through ATMs or branches, incur higher fees (ranging from 10 to 15 dirhams per transfer) and take longer processing times, motivating banks to prioritize and promote faster digital services.