UAE Central Bank issues new fee caps on banking services

Amendment is intended to protect consumers from unfair practises, Central Bank says

A customer uses an automatic teller machine. Payment processor Network International earned 73 per cent of its first half revenue in 2019 in the Middle East. Reem Mohammed/The National

The UAE's central bank said on Tuesday it has set new rules capping the fees charged for retail banking services to protect consumers from unfair practises.

The fee caps will apply to consumer-related banking services including home loans and charges for late credit card payments, the bank said in a statement.

Banks must notify the Central Bank of any plans to introduce a new fee or of changes to existing fees larger than five per cent, it said. Bank fees will be reviewed annually going forward.

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The move is aimed at protecting consumers from anti-competitive or unfair banking practises, the bank said.

All the fees under the new rules are exclusive of 5 per cent VAT set by the Federal Tax Authority.