UAE Banks to Raise Minimum Balance to AED 5,000: What It Means for Nepalese Residents

Big Update: Minimum Balance Requirement Increased to AED 5,000 from June 1

Starting June 1, 2025, many banks in the UAE will raise the minimum monthly balance requirement for personal accounts from AED 3,000 to AED 5,000. For thousands of Nepalese working and living in the UAE—especially those earning lower salaries—this change could mean extra monthly bank charges unless they meet certain conditions.

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What’s Changing?

• New Minimum Balance: AED 5,000
• Previous Minimum: AED 3,000
• Effective From: June 1, 2025
• Monthly Penalty Fee (if minimum not maintained): AED 25 to AED 105 (varies by bank and account type)

Who Will Be Affected the Most?

This policy is expected to impact:

• Low-income Nepalese workers earning less than AED 5,000
• Freelancers or part-time workers without regular salary transfers
• Students and fresh job seekers
• Small businesses and self-employed individuals

Who Is Exempt from the Charges?

To avoid these penalties, account holders must meet at least one of the following criteria:

1. Maintain total relationship balance of AED 20,000 or more (includes savings, loans, credit cards, etc.)
2. Salary transfer of AED 15,000 or more monthly
3. If salary is between AED 5,000 and AED 14,999:
   • Must also have a credit card, loan, or overdraft facility from the same bank

What Happens If You Don’t Meet These Conditions?

If your account balance falls below AED 5,000 and you don’t meet the exemption conditions:

• A monthly fee of AED 25 to AED 105 will be charged
• You may get warnings from your bank
• Inactive accounts may be frozen or closed if balances stay low for a long time

Tips for Nepalese to Avoid Penalties

Here’s how you can manage your account better and avoid unnecessary charges:

1. Switch to Digital-Only Banks

Some online banks in UAE offer zero-balance accounts with no monthly fees. These are good options for low-income earners.

2. Use Exchange House Payroll Cards (WPS)

For those earning below AED 5,000, consider salary cards issued by exchange houses, which are easier to manage and don’t require maintaining a minimum balance.

3. Consolidate Your Banking

If you already have a loan or credit card with a bank, link your salary account with it to meet the exemption criteria.

4. Talk to Your Employer

If your salary is just under AED 5,000, discuss options with your HR. Some companies can help employees by using payroll solutions or providing allowance top-ups.

Expert View

“For a lot of Nepalese workers in the UAE, this sudden change could add extra burden on monthly savings or remittances. It’s important to evaluate your banking relationship and explore alternatives if needed,” said a UAE-based financial advisor familiar with Nepalese expat issues.

What Should You Do Now?

• ✅ Check your current bank account balance
• ✅ Talk to your bank about your options
• ✅ If needed, open a zero-balance or WPS-linked account
• ✅ Share this update with friends or colleagues who might be affected

Final Thoughts

This move by UAE banks is part of a broader effort to improve customer segmentation and reduce risk. However, for many Nepalese working hard to support families back home, this means re-thinking how we bank. The good news? With the right steps, you can avoid penalties and still manage your finances smoothly.

Stay Updated

For more useful updates related to banking, visas, jobs, and life in the UAE, keep following Nepalese in UAE.

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