Banks exempt their customers from local money transfer fees

Banks in the country have begun providing local money transfer services for free, without any fees, through their smart applications, especially for transfers with amounts of money less than 1,000 dirhams.

According to what dealers told Emirates Today, these banks had previously deducted a fee ranging between half a dirham and 1.5 dirhams for transfers to other banks, in accordance with their policy, but during the recent period, they have begun providing this service without fees.

In turn, employees serving customers in these banks said that financial transfers from one account to another in the same bank have been free for a long time, but family financial transfers to other banks within the country have recently been exempted from fees as well.

In comment, banking expert Awatef Al-Harmoudi said that the fees imposed by banks on financial transfers are of two types: the first is for the benefit of the bank, and the other goes to the Central Bank’s platform. There is also a list specified by the latter regarding the fee ceiling that must not be exceeded with regard to local transfers.

She added to “Emirates Today”: “Some banks charge the customer these fees, while others exempt him from them, and bear them for the customer because they are simple.”

Al Harmoudi explained that the systems, platforms and structure of financial transfer in the UAE are very advanced, as transfer transactions are completed through them at the same time, so banks compete to attract new customers and retain the customers they have, by offering various exemptions from fees, or providing distinguished services. around the clock, noting that “this is a good thing, and ultimately in the interest of the customer.”

Al Harmoudi continued: “From time to time, banks offer various promotional offers that encourage customers to use their smart applications and electronic services,” pointing out that the banking sector in general during the past four years has achieved strong profits with the support of financial solvency, quality of services and demand for electronic transactions. This saves costs in operations. Therefore, it is logical for these banks to reward their customers who are partners in its development and increase its profits.

She explained: “The fees imposed on banking transactions also have taxes, which causes banks to keep the fees and taxes imposed on them, while others exempt the customer from them and bear them on his behalf, according to each bank’s policy, and the customer base it has or its realized profits.”

. The Central Bank has set a list of fees that must not be exceeded for local transfers.