Most consumer spending during Eid Al Fitr will be in cash and UAE banks have loaded up their automated teller machines (ATMs) in anticipation.

New restrictions imposed on credit card use by issuers coupled with a general restraint on card usage by users themselves is being cited as the primary reason for a cash-only Eid.

Despite the large of number of ATMs in the country, long queues have been noticed at cash dispensing machines in key locations, as people ensure they do not run out of money during the festival.

Ashok Gupta, Chief Executive (GCC Operations), Bank of Baroda, echoed the sentiments of several senior bankers contacted by Emirates Business when he said: "We have already given instructions to the officials concerned to make sure that all ATMs function smoothly during the holidays as ATMs will be the only windows our customers can depend on for cash."

Bank branches will be closed for most of the week.

Gupta forecast that a large chunk of Eid spending this year will be in cash as credit card use will remain restricted.

Several card issuers have imposed stricter measures this year, including reductions in spending limits and an increase in the fee that merchants need to pay issuers, fearing defaults and "skips". "This is the first Eid since the world went deep into recession, so we don't know what level of spend people will have during the holidays. The number of families has also dropped compared to last year's Eid," said the general manager of a Dubai mall.

This Eid, employees of government, semi-government and large corporate houses have already received their September salaries in advance.