Some of the banks in the UAE have informed their customers of the change in the fees associated with sending money transfers by sending them letters.
Bringing down the cost of international money transfers
As of the 23rd of April in the following year, financial institutions plan to eliminate fees associated with international money transfers and domestic transfers made in dirhams, bringing them down to either zero or 37 dirhams, compared to the 75 dirhams that are required under the regulations that are currently in place.
Examples of the cost of money transfer fees increasing in some situations
According to letters that customers of these banks have received and which I have seen, the banks have also modified some fees related to money transfers within the country that use foreign currencies by raising them to 100 dirhams instead of 75 dirhams if the transaction was done using the branch. This change was made because the banks want to make more money off of these types of transactions.
Examples of how the value of fees for money transfers can be reduced
It will only cost 25 dirhams if it is completed using the smart application, which is a significant savings.
Free transfer of monetary funds
The messages indicate that any and all remittances that are received, the fees for which are covered by the sender, and which bear the code "OR" will be given without charge, irrespective of the total amount of the remittances.
Estimate the costs associated with making financial transactions.
The fees that are now in effect, which total 75 dirhams, have been amended to become as follows:
Free of charge and with no additional costs for amounts up to 500 dirhams can be transferred.
There is a cost of 37.5 dirhams attached to the transfer, which takes place when the value of the transfer is between 500.01 and 1000 dirhams.
Due to the fact that the amount being transferred is between 1000.01 and 1500 dirhams, there will be a fee of 50 dirhams assessed.
A fee of 75 dirhams must be paid for every transfer amount that is greater than or equal to 1500.01 dollars.
Transfer fees subject to a value-added tax
A value-added tax of 5% will be added to the total amount of the decreased and revised fees as well as those that have been increased, as stated in the messages that were given to consumers. This is the case unless it is specifically stated that the fee already includes tax or is exempt from it.
"Banks fight with each other to persuade clients to carry out money transfers," the banking expert Awatef Al-Harmoudi said. "They do this by cutting and altering costs on money transfers and transfers, in a desire to benefit from the sums received from this item."
Exemption from the payment of costs
In addition, she clarified that "transfers for which the sender pays fees, the beneficiary receives them for free," and that "for those that are sent with a (share or share) system, the sender pays half of them and the recipient the other half, and sometimes the recipient pays the full fee, if it is sent accordingly."
In addition to this, she mentioned that "transfers performed through banking platforms and smart applications are cheaper than those made in branches, and all possibilities are available to the customer, and he can choose what fits him."
Employing sophisticated software programmes for financial dealings
She made the point that clients can use the high-level technical infrastructure that banks provide, which is accessed through "online" or "smart" apps, for a price that is either decreased or eliminated entirely in many instances.
