As the world keeps on responding and adjusting to the well-being, social status, monetary difficulties welcomed on by the quick spread of corona virus illness 2019 (COVID-19), organizations are confronting difficulties and dangers, while attempting to ensure the well-being and prosperity of their workforce. In the same manner as governments all through the world, the United Arab Emirates (UAE) has been building up a help structure at both Federal and at Emirate level. Such help incorporates the arrangement of sponsorships, a waiver or deferral of specific charges or assessments, money related support and variety of work and visa terms.
Similarly, the bank offers the most important support in these difficult situations to the residents of UAE. More banks in the UAE have declared alleviation measures for their retail and corporate clients to assist them with beating difficulties from the effect of corona virus. Commercial Lawyers of Dubai have witnessed various opportunities offered by banks for relaxation in the credit cards and loans.
Under a AED100 billion economic stimulus packages unveiled by the UAE Central Bank in mid of March, lenders in the Emirates were ordered to “treat all their customers fairly” and grant “temporary relief" on retail clients’ loan payments for up to six months from the said date. Central Bank under new scheme of Targeted Economic Support through collateralized loans at zero cost to all banks operating in the UAE and AED 50 Billion of funds freed from banks’ capital buffers.
Three banks in Abu Dhabi that is First Abu Dhabi Bank, Abu Dhabi Commercial Bank and Abu Dhabi Islamic Bank are offering bolster measures for clients and have acquainted seventeen activities to help people and organizations. Ras al Khaimah's RAKBank, Sharjah Islamic Bank and Commercial Bank International having its headquarters in Dubai has likewise offered support to the clients in all ways possible. Abu Dhabi Islamic Bank (ADIB) is deferring regularly scheduled payments for singular clients and a`sked those affected by Covid-19 to connect with the bank to talk about further help in accordance with the UAE Central Bank bearings.
Some of the initiatives undertaken by the bank for individual customers are:
- Relaxation in repayment of loan for up to three months without any additional interest;
- Charges levied on ATM withdrawals will be refunded by the bank;
- Refund of foreign currency exchange fees for customers who booked international flights through debit or credit cards;
- One-month repayment holiday for customers having personal or car loan.
Whereas, the banks have different initiatives for small and medium sized companies coping with the situation created by COVID-19 as follows:
- Reduction of mandatory minimum balance in bank up to AED 10,000 and removal of any minimum balance bank charges for next three months;
- Relaxation for three months on companies having business loans from banks;
- Reduction of bank fee charges.
It is quite apparent that banks have taken serious measures in supporting individuals as well as the organizations registered within UAE thereby allowing them to adjust with the current situation.