Frequently Asked Questions on IBAN
What is IBAN (International Bank Account Number)?
IBAN is a way of uniquely identifying your account within the UAE. It is an extension of your existing account number and not a new account number.
What does IBAN contain?
The UAE IBAN consists of 23 alphanumeric characters. It has 4 key components as illustrated below:
Country code (2 digits i.e. AE) - Check digit (2 digits i.e. 32) - Bank code (3 digits i.e. 040) - Account number (16 digits i.e. 0000025345678001)
For which of your accounts is IBAN equivalent required?
IBAN is applicable for transactional accounts such as Current Account, Savings Account, RAKvantage Account, RAKfinance Business Account, Call Deposit Account, F@st S@ver Account, Evantage Account and RAKsave Account.
Does every above mentioned account type have a corresponding IBAN?
Yes. Each account has a different IBAN number.
Do Credit Cards, Fixed deposits or loan accounts have a corresponding IBAN?
No. Credit Cards, Fixed deposits or Loan accounts will not have IBAN.
Where should I use IBAN Number?
When RECEIVING remittances:
The Remitter of funds will need to quote your RAKBANK IBAN the same way that they currently quote your account number. For this purpose you should provide the IBAN equivalent of your RAKBANK account to the remitter. This would be applicable when you receive funds from individuals/employers/business associates within UAE or from abroad.
When SENDING funds:
Kindly provide RAKBANK with the IBAN of your beneficiary accounts while remitting funds and amend the existing beneficiary list on Online Banking / Mobile Banking. This will be applicable for funds remitted to individuals/institutions including payment of salaries through the Wage Protection System (WPS) within UAE. In addition, all Standing Instructions for remittance of funds within UAE will also have to be amended to incorporate the IBAN.
What are the advantages of IBAN?
The main purpose of IBAN is to improve the speed and accuracy of processing of your payment transactions.
Is it mandatory to use IBAN?
Yes. The Central Bank regulation is effective from 19th November 2011, when all banks in the UAE are required to accept and process payment instructions with IBAN. Consequently, you will be required to provide an IBAN for all instructions for value date on or after 19th November 2011 when making payments from or receiving payments to your account. Please ensure that the IBAN for your account is communicated to all parties from whom you are expecting a remittance to your account. In case the IBAN is not used, the processing of both Inward and Outward payment in your account is likely to be rejected or may be delayed with additional processing charges as may be imposed by the Central Bank from time to time.
How will you get the IBAN equivalent for all your RAKBANK accounts?
A letter is being sent to all RAKBANK Account holders showing existing RAKBANK Account numbers and corresponding IBAN. From 1st November, 2011 the IBAN will also be displayed on the top right hand corner of your Account statements.
Alternatively, IBAN can also be checked by logging on to Internet Banking.
Is IBAN mandatory for all transactions?
No. IBAN is NOT mandatory for internal transactions within RAKBANK.