CBUAE Introduces Universal Accounts

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The Central Bank of the UAE (CBUAE) has issued a new Notice mandating the launch of low‑cost “Universal Accounts” for low‑income residents, as part of its broader National Financial Inclusion Strategy. This policy directly impacts all Licensed Financial Institutions (LFIs) participating in the Wages Protection System (WPS), as well as banks, stored value facilities (SVF) providers and exchange houses operating across the UAE.

What is a Universal Account in the UAE?

A Universal Account is defined by the CBUAE as a basic, digitally accessible current account, denominated in UAE dirhams and tailored for individuals with a total monthly income of AED 5,000 or lower. The account must provide essential financial services, carry no minimum balance requirement and be developed strictly in line with the CBUAE’s Universal Account Guidance issued in January 2026.

To be eligible, customers must be legal residents of the UAE, earn a total monthly income of AED 5,000 or less and, at the time of application, not hold any other active current or savings account in the UAE based on self‑declaration. This framework is designed to bring previously underbanked and unbanked low‑income workers into the formal financial system.

Mandatory rollout for WPS participants

All LFIs that participate in the UAE Wages Protection System are required to develop and offer a Universal Account product. These institutions must launch their Universal Account offering within 90 calendar days of the date of the Notice, with any extension granted only in exceptional cases at the discretion of the Central Bank.

LFIs that are not currently part of the WPS may also choose to offer Universal Accounts, provided they fully comply with the requirements set out in the Guidance. This creates an opportunity for more banks and SVF providers in the UAE to expand their inclusion‑focused product portfolios.

Key product features and digital experience

From a product design perspective, Universal Accounts must meet several minimum standards prescribed by the CBUAE.

• No minimum balance requirement is allowed on the account.
• Account opening must be possible through digital channels, including mobile applications, with branches used only where digital onboarding is not feasible.
• Monthly account maintenance fees must be zero or nominal, capped at a maximum of AED 2.
• Withdrawals and deposits via the LFI’s own ATMs must be free for up to four transactions per month, while balance inquiries are always free of charge. For additional transactions and non‑LFI ATMs, the LFI’s standard fee structure may apply.

At a minimum, Universal Accounts must support salary or income transfers, domestic and international peer‑to‑peer transfers, and bill payments and point‑of‑sale payments via card or mobile app. Account holders must receive a debit card, subject to their consent, but cheque books are explicitly prohibited for Universal Accounts. If an LFI wishes to offer a cheque book, it must first close the Universal Account and migrate the customer to a standard account.

To further enhance accessibility for low‑income and migrant segments in the UAE, the CBUAE requires that the mobile application interface for Universal Accounts be available, at a minimum, in Arabic, English, Urdu and Hindi.

Transition from salary cards to Universal Accounts

The Notice also reshapes how salary payments are handled for low‑income workers in the WPS. Banks and SVF service providers participating in the WPS and wishing to continue their participation must discontinue issuing salary cards. Existing salary cards must be phased out within 90 calendar days from the date of the Notice, with Universal Accounts positioned as the replacement solution.

Exchange houses participating in the WPS now face a strategic decision. Within 180 days of the Notice, they must either apply to the CBUAE for a No Objection Letter to conduct SVF business or establish a formal arrangement with a WPS‑participating bank or SVF provider to continue offering WPS services. The Central Bank must be notified of any such arrangement within the specified timeframe.

Governance, reporting and consumer protection

The Universal Account Guidance ties directly into UAE regulations on AML/CFT, consumer protection and dormant accounts, and sets minimum expectations for governance, reporting and customer communication. LFIs must ensure seamless digital onboarding, clear disclosures in the mandated languages and transparent terms and conditions, including fees and usage limits.

The CBUAE requires LFIs to submit biannual reports on 20 January and 20 July each year, using prescribed forms. These reports must cover the number of Universal Accounts opened (disaggregated by gender, nationality, language preference and emirate), transaction volumes and values, demographic and income profiles, account closures with reasons, user feedback and complaint trends, and identified compliance and product risks.

LFIs may close a Universal Account if the customer provides false or misleading information, opens or holds another account in addition to the Universal Account, or breaches the account terms and conditions. Customers must be informed of any closure and given a reasonable period to raise objections in line with the account agreement.

If an application for a Universal Account is rejected, the institution must notify the individual within five working days via SMS or phone call, clearly stating the reasons and explaining how to appeal or submit a complaint. In addition, LFIs are expected to run targeted awareness and outreach campaigns to promote Universal Accounts among low‑income individuals in the UAE.

Overall, the Universal Account framework marks a significant step in advancing financial inclusion and consumer protection in the UAE, while requiring banks, SVF providers and exchange houses to upgrade their digital onboarding, product design and reporting capabilities.

Crowe UAE’s Governance, Risk and Compliance team supports banks, SVF providers and exchange houses in designing and implementing SVF frameworks fully aligned with the new CBUAE Universal Account requirements. Leveraging deep UAE regulatory, AML/CFT and consumer protection expertise, they deliver end‑to‑end advisory from gap assessment and policy design to digital onboarding controls and reporting, enabling compliant, low‑cost Universal Account propositions.