Monday, November 19, 2012

No bank loans for UAE residents without Emirates ID card

The Emirates Identity Card could soon be one of the must-have documents when applying for a loan or to get other bank services and facilities as well.
According to a report in Emarat Al Youm, citing, a UAE Central Bank circular, all banks and finance companies and houses operating in the country are to request the Emiartes ID of a customer applying for banking facilities.
The report says the circular, issued by Saeed Al Hamiz, Assistant Governor, UAE Central Bank, specifies loans will not be granted without the national identity card.
The newspaper adds that the circular was issued at the request of Obaid Humaid Al Tayer, Minister of State for Financial Affairs and Chairman of the Federal Credit Bureau.
A central bank official who asked not to be named said that under this circular individuals will not be able to get any loans or financing without providing the national ID card.
The official clarified that the customer's passport is no longer sufficient to accomplish bank transactions.

The Emirates Identity Authority (Eida) has tied up with a local bank to experiment the use of ID cards in banking transactions.
According to a report in the Arabic daily ‘Emarat Al Youm’, the authority helped a client open an account with a local bank.
The transaction was quicker by at least 20 minutes, said Dr Ali Mohammed Al Khouri, General-Director, Eida.
The bank staff was able to quickly download all necessary client information from his ID card, thereby saving time. The process is also safer and more accurate, he added.
It is now up to the UAE Central Bank and individual banks to decide how to use ID cards to enhance their services, he said.
Dr Al Khouri said ID cards could also be used to deposit and withdraw money in future.

At present, Eida is also in the process of linking up with all government institutions.