All banks, finance houses, investment companies must be fully prepared to go live with system from June 15: Central Bank. The Central Bank of the UAE has decided to implement The Direct Debit System (UAEDDS) in the UAE with effect from June 15, 2013.
The implementation of the Direct Debit will enable customers to make regular, automatic payments from their bank accounts towards mortgage loans or credit card payments or personal loan installments. The facility is designed to eliminate the need to sign several post-dated cheques for installments upon obtaining of a loan/finance, allowing banks to reduce their reliance on post-dated cheques.
All banks, finance companies and investment companies must be fully prepared to go live with UAEDDS on the specified date of launch, the Central Bank stated. As part of the implementation process, the Central Bank will work with banks, finance companies and investment companies to devise a campaign to raise public awareness.
The benefit for account holders is that they can plan their expenses more efficiently. This comes in implementation of the Federal Government’s Strategy, which calls for adopting technology to enhance electronic systems and improve the services provided to the customers of UAE banks.