UAE Central Bank (CBUAE) has introduced new regulations in a bid to set new maximum limits or ‘fee caps’ charged by the banks on retail customer services.
The central bank published an amendment to the ‘Annexure 2’ of the Regulations Regarding Bank Loans & Services Offered to Individual Customers (2011).
The new fee caps limit will be applicable on various banking changes including home loans and late fees for credit cards.
Currently, CBUAE has increased supervision on the banking sector to protect consumer interests. This amendment forms a part of the overall supervision programme.
CBUAE identified 140 fee types and imposed fee caps on 43 types following detailed deliberation, understanding of cost bases and expert judgment.
Out of these 43 types, 24 fee types are common with the old caps but were either reduced or kept at the same level. 19 are new fee types associated with home loans and credit cards.
The commercial banks, which were also associated in the consultation process, were stated to be comfortable with the amended regulations.
The central bank has also directed the banks and finance companies to put up the new fee structure caps on their respective websites.
CBUAE has also planned to review fees charged by the banks every, while the banks are also required to procure central bank approval before introducing a new fee larger than 5%.