UAE licence of Indian money exchange Muthoot revoked by Central Bank

Dubai: The Licence of remittance firm Muthoot Exchange to operate in the UAE has been revoked.

This was confirmed by the UAE Central Bank, which said it had 'struck its (Muthoot exchange) name off the Register, pursuant to Article 137 (1) of the Decretal Federal Law No. (14) of 2018 regarding the Central Bank & Organisation of Financial Institutions and Activities, and its amendments'.

Muthoot Exchange was licenced incorporated in 2010 to offer remittance and other services in the UAE. It is subsidiary of one of the biggest non banking financial services firms in India.

The UAE Central Bank decided to terminate the licence after Muthoot Exchange 'failed' to maintain its paid-up capital and equity to the level required by the applicable standards and regulations.

According to remittance industry sources, Muthoot had limited market share in the UAE. The UAE's remittance space has undergone significant changes in recent years, with the UAE Exchange House ceasing operations, while entities such as Lulu and Joyalukkas became more visible. The biggest names remain Al Ansari, which had a successful IPO last year, and Al Fardan.