In a move aimed at fostering financial inclusion and easing banking access for all segments of society, the Central Bank of Kuwait has issued a directive halting the practice of charging fees on inactive accounts with balances below 100 dinars. Under the new regulation, banks are prohibited from applying any charges to accounts that fall below this threshold, even if the balance reaches zero.
The Central Bank’s decision also includes the cancellation of several other fees previously imposed on customers. Among these is the two-dinar monthly charge for inactive accounts, as well as a five-dinar fee for updating customer data. Both fees were previously levied by certain banks, adding to the financial burden on account holders.
Additionally, the Central Bank has removed a total of 22 dinars in fees from banking services. This includes 12 dinars related to annual balance notifications, which will now be provided free of charge, and 10 dinars in fees for services related to updating customer information. Banks had previously charged customers for these services, despite still offering them free of charge online.
The regulatory changes are expected to have a positive impact on financial inclusion, particularly among low-income individuals who may have been discouraged from opening bank accounts due to the fees associated with minimum balance requirements. The removal of these charges is also expected to make it easier for families to open savings accounts for children, even if the balance fluctuates over time.
Prior to the new directive, some banks were charging a fee of two dinars per month on inactive accounts, which could accumulate over time if the account holder failed to use the account regularly or if the account holder was living abroad. This policy raised concerns about the financial burden on customers with low or fluctuating account balances.
The Central Bank’s new directive applies to all types of accounts, including dormant accounts, prize accounts, and children’s savings accounts. Previously, some banks excluded salary accounts from such charges, but now, all accounts must be free from these fees.
The cancellation of the five-dinar fee for updating customer data reflects the bank’s push to make compliance with the “Know Your Customer” (KYC) regulations more accessible. The move aims to ensure customer data is updated in a timely manner, supporting both the bank’s efforts in anti-money laundering (AML) regulations and the customer’s ease of use.These regulatory changes demonstrate the Central Bank of Kuwait’s ongoing commitment to improving financial accessibility and inclusion, ensuring that more individuals have access to essential banking services without unnecessary financial barriers. By removing fees that disproportionately affect lower-income customers, the Central Bank is helping create a more inclusive banking system, aligning with broader efforts to maintain economic stability in Kuwait.
