UAE banks refuse to accept these for deposit or exchange
Commercial banks in the UAE refuse to exchange coins with banks notes or vice-versa and also don’t accept coins from customers to deposit in their bank accounts.
According to a circular issued to the banks in the UAE, a significant number of individuals and institutions have approached the Central Bank to convert these coins into bank notes.
The apex bank, however, warned that this practice is tantamount to non-compliance with their legally mandated duties.
The subject of complaint of individuals/institutions is that commercial banks, with whom they maintain accounts, refuse to deposit their dirham coins into their accounts or dispense their dirham coins requirements.
“The Central Bank, being the currency issue authority in the UAE, endeavors at great cost and effort to always avail adequate dirham banknotes to always avail adequate dirham banknotes and coins to commercial banks and other financial institutions to cover the currency market needs, to serve the general public and the institutions of the UAE,” says the Central Bank notification released on December 13.
The Central Bank notification asked that commercial banks must accept from their customers to deposit or withdraw dirham coins from their accounts at their request, and refusal to do so is a non-compliance of their legally mandated duties and gross violation of banking practice.
The Central Bank warned that it would, henceforth, closely monitor the banks that violate this instruction and will take appropriate measures in this regard.
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