Saturday 23 June 2018

UAE to introduce direct debit system

Dubai, April 9, 2013

The UAE Central Bank has announced plans to introduce the ‘Direct Debit System’ across the country starting from June 15.  

The implementation of Direct Debit will enable customers to make regular, automatic payments from their bank accounts towards mortgage loans or credit card payments or personal loan installments.

Central Bank of the UAE said the move come as part of its strategic initiative to boost the efficiency of the payment systems in the UAE.

The introduction of the Direct Debit System is a step in the right direction towards increasing the efficiency of our banking system, and elevating it in line with the global best practices, thus strengthening the country’s status as a global financial hub, it stated.

The facility is designed to eliminate the need to sign several post-dated cheques for installments upon obtaining a loan/finance, allowing banks to reduce their reliance on post-dated cheques, the central bank said in its statement.

"The benefit for account holders is that they can plan their expenses more efficiently. Also, the UAE federal government strategy requires adopting technology to enhance electronic systems and improve services to banking customers in the UAE," it noted.

"Given our focus as a regulator we believe it is necessary to have a prudent, stronger and stable economy. Our current intention is to establish a more convenient retail banking system that will create more stable and progressive economic development," it added.-TradeArabia News Service

Tags: UAE | loan | payment |

More Finance & Capital Market Stories

calendarCalendar of Events