Emirates NBD will offer its clients new smartTrade activation at zero cost for next three months to enable them to route more digital transactions to the bank/Bloombergby Kudakwashe Muzoriwa
Dubai's Emirates NBD is cutting transaction tariffs to help support businesses in the UAE which may be affected by the coronavirus outbreak.
In a statement, Emirates NBD said that its transaction banking unit will reduce tariffs over the next three months, in particular for transactions initiated by customers using its revamped smartTRADE platform which replaces the need for physical branch visits.
Ahmed Al Qassim, Emirates NBD’s Senior Executive Vice President and Group Head, Corporate & Institutional Banking, said, “We are pleased to offer our clients reduced bank charges for transactions initiated via smartTrade platform with immediate effect which will help alleviate pressure by reducing operational costs.”
Last week, the Central Bank of the UAE (CBUAE) advised banks to re-schedule loan contracts, grant temporary deferrals on monthly loan payments and reduce fees and commissions to customers as part of measures to mitigate the effects of coronavirus.
Moody’s said that CBUAE’s guidance will support the economy amid the coronavirus outbreak and contain contingent liability risk for the government by preventing potential liquidity challenges from turning into solvency issues for some UAE private sector and government-related entities.
The central bank also reduced its key interest rates by 50 basis points following an emergency move by the US Federal Reserve in response to the impact of the coronavirus outbreak.
CBUAE said that it was cutting interest rates on certificates of deposit and its repo rate for borrowing short-term liquidity by 50 basis points (bps).
Similarly, the repo rate applicable to borrowing short-term liquidity from CBUAE against certificates of deposits has also been reduced by 50 bps.