Quotes: MENA   Enter Symbol: NewsLetter: Search: advanced

UAE - New rules to help money exchanges double capital  Join our daily free Newsletter

MENAFN - Khaleej Times - 08/01/2014
No. of Ratings : 0
Add to Mixx!



(MENAFN - Khaleej Times) Khaleej Times spoke to leading stakeholders, who welcomed the Central Bank of the UAE's new rules, which will make sure that the firms dealing in cash had enough financial means to sail through in times of crisis



Dr B.R. Shetty, managing director of the UAE Exchange, welcomed the new rules, which will allow only professionally run firms to survive



"With the higher capital requirement, the customers may not suffer at the hands of a financially weak or technically incapable money exchanges," he said



Now the Central Bank will interview the officials who will manage the exchange company, which must be lauded, as only highly capable professionals will be allowed to run such businesses, he said



Jitendra Gianchandani, chairman, Jitendra Consulting Group, said the move was part of government strategy to regularise the sector



"New rules will enhance the general public's confidence, as their money will be handled by financially sound firms," said Arbab Ali Narejo, the general manager of Abu Dhabi based National Exchange Company. He said that the Central Bank of the UAE has taken right measures in order to groom the exchange firms on modern lines, and beef up their operations


The exchange firms' setup on partnership basis had no minimum capital requirements, due to which several firms had been set with small capital. And since the business has grown manifold in recent years to wire transfers, buying/selling in currencies and Wages Payment System or WFS, there was need to increase the capital, in accordance with the expansion in business volumes, Narejo said



The general manager said an LLC setup to carry out exchange business must have 100 per cent bank guarantee to equal minimum capital of Dh50 million, in previous rules, the bank guarantee was 50 per cent of the capital



All these measures have been taken after the recent collapse of an exchange firm whose employees misappropriated the funds of the wages payment system account and the company had not enough capital to pay the claims, he said the new rules will address this issue in the future



With the new rules and emphasis on higher capital, there was enough cushion against such an eventuality, the general manager said



For each of the new branch opened, the exchange company has to increase its capital by ten per cent, he said, which was a good measure, as the expansion would commensurate with their capital.


 


Khaleej Times




  MENA News Headlines
 May 24 2016 - Dubai Courts reveals 2015s results & achievements in Annual ReportMENAFN Press
(MENAFN Press) UAE May 23, 2016– Dubai Courts has launched today (Monday, May 23, 2016) its Annual Report 2015, reflecting a significant improvement in the performance of the three courts; ...

 May 24 2016 - GCC countries need structural economic reform to retain prosperityMENAFN Press
(MENAFN Press) GCC countries must create a new economic paradigm to successfully end reliance on oil, according to accountancy and finance body ICAEW. This was the outcome of ICAEW’s ...

 May 24 2016 - Arabnet Partners with Smart Dubai to Highlight Smart Economy and Digital Business TransformationMENAFN Press
(MENAFN Press) UAE, May 23, 2016 - For the second year in a row, Smart Dubai Office is partnering with the ArabNet Digital Summit to highlight digital transformation in the public and private ...

 May 24 2016 - Al Ansari Exchange pledges AED 50 million donation to various charities in commemoration of its Golden JubileeMENAFN Press
(MENAFN Press) UAE, May 23, 2016–Al Ansari Exchange, the UAE-based foreign exchange and worldwide money transfer company, commemorates the 50thAnniversary of its establishment. To mark the ...

 May 24 2016 - Help Pick a Festival Winner and Get Insight from 5-time Emmy Winner at New Media Film FestivalMENAFN Press
(MENAFN Press) Help Pick a Festival Winner and Get Insight from 5-time Emmy Winner at New Media Film Festival Honoring Stories Worth Telling Paul Wagner - Digital Keynote Speaker Ana Kasparian ...

 May 24 2016 - Global Heparin Cap Consumption 2016 Market Research ReportMENAFN Press
(MENAFN Press) Global Heparin Cap Consumption 2016 Market Research Report The Global Heparin Cap Consumption 2016 Market Research Report is a professional and in-depth study on the current state ...

 May 24 2016 - Global Hold The Needle Detector Consumption Analysis by Capacity, Production, Cost, Gross & RevenueMENAFN Press
(MENAFN Press) Global Hold The Needle Detector Consumption Analysis by Capacity, Production, Cost, Gross & Revenue The Global Hold The Needle Detector Consumption 2016 Market Research Report is ...

 May 24 2016 - Stealing towels from hotelsMENAFN Press
(MENAFN Press) Stealing towels from hotels Hotels are using trackers for stealing towels NORTHBROOK, ILLINOIS, USA, May 24, 2016 /EINPresswire.com/ -- In the luxury stay at hotels, the ...

 May 24 2016 - Insulin Needles Consumption 2016 Global Market Research ReportMENAFN Press
(MENAFN Press) Insulin Needles Consumption 2016 Global Market Research Report The Global Insulin Needles Consumption 2016 Market Research Report is a professional and in-depth study on the current ...

 May 24 2016 - Global Insulin Pen Consumption 2016 Market Research ReportMENAFN Press
(MENAFN Press) Global Insulin Pen Consumption 2016 Market Research Report The Global Insulin Pen Consumption 2016 Market Research Report is a professional and in-depth study on the current state of ...

more...


 





Google

 
 

Middle East North Africa - Financial Network

MENAFN News Market Data Countries Tools Section  
 

Middle East North Africa - Financial Network
Arabic MENAFN

Main News
News By Industry
News By Country

Islamic Finance News
Private Equity News

How-To Guides
Technology Section

Travel Section

Search News

Market Indices
Quotes & Charts

Global Indices
Arab Indices

Commodoties

Oil & Energy

Currencies Cross Rates
Currencies Updates
Currency Converter

USA Stocks
Arab Stocks
 

Algeria 
Bahrain 
Egypt 
Iraq
Jordan 
Kuwait 
Lebanon
Morocco 
Oman 
Palestine
Qatar 
Saudi Arabia 
Syria
Tunisia 
UAE 
Yemen

Weather
Economic Calendar
Financial Glossary


Financial Calculators

RSS Feeds [XML]

Corporate Monitor

Events

Real Estate
Submit Your Property

Arab Research
Buy a Research

Press Releases
Submit your PR

Join Newsletters


 
© 2014 menafn.com All Rights Reserved.  Terms of Service | Privacy Policy | Contact Us | Advertise | About MENAFN | Career Opportunities | Feedback | Help