Cairo: Kuwait’s central bank has finally removed contested fees on individuals’ local electronic transfers, as per media. This move was taken after several people protested against the proposed move by local banks to charge a 1 KD transfer fee for any transfer, including salary transfers starting from next month, June 5.

According to the Central Banks of Kuwait, charging such fees requires support as part of the “balanced relationship” between the banks and their customers to boost tendencies towards digital transformation and motivate customers to use electronic banking channels.

As per sources, the central bank stepped in to stop the fees after the controversy that followed the levy imposed by some banks operating in Kuwait.

In March, all officials of banks held a video conference at which mostly every bank agreed to charge KD1 on each such transfer, with the deadline being June 5, reports.

However, one of the banks disagreed with this decision, while another proposed obtaining the central bank’s approval beforehand.

Other banks charged controversial fees in the past months, prompting the central bank to step in and stop the levy. Around 2.5 million e- inter-bank transfers by individuals are conducted annually in Kuwait, Al Rai said, quoting unofficial banking data.

The largest bank customers in Kuwait were surprised by a message on their phones stating that a fee of 1 dinar would be applicable on every local transfer made by individuals electronically, starting from the 1st of next June.

They held a hypothetical public talk with everyone bashing and attacking the decision to the extent it prompted the Central Bank of Kuwait to intervene and stop the fee.

That was the heated debate in this regard makes the question fair of what promoted the National Bank of Kuwait to take the decision since it constitutes one of the pillars of digital transformation in banking and advocates the expansion of investment in its infrastructure.