Central Bank of Oman Introduces Partial Payment Cheque System: How This Will Impact Financial Transactions for Businesses
Muscat: The Central Bank of Oman (CBO) has implemented the System of Partial Payment of Cheques, effective December 15, 2025. This initiative follows new regulatory guidelines aimed at enhancing flexibility and efficiency in cheque settlements.
Under this system, beneficiaries of cheques can receive available funds from a customer’s bank account, even if the balance is less than the cheque amount. This represents a notable change from the previous practice where cheques were returned unpaid due to insufficient funds.
The CBO stated that this initiative seeks to strengthen financial discipline within the banking sector, improve cash flow for both individuals and businesses, and reduce the chances of legal disputes stemming from returned cheques.
This system is applicable to all cheques, regardless of their value, and it is mandatory for the cheque bearer to accept partial payments. Beneficiaries of partially paid cheques may re-present them to claim the remaining balance while also retaining their legal rights to the outstanding amount in accordance with Commercial Law and relevant sections of the Penal Code.
Cheques eligible for partial payment include crossed or account payee cheques, as well as bearer or order cheques, whether presented at the counter or otherwise.
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The introduction of the System of Partial Payment of Cheques by the Central Bank of Oman presents new opportunities for businesses by enhancing cash flow and reducing legal disputes over insufficient funds. This shift fosters a more flexible environment that can drive greater transaction efficiency, making it attractive for investors and entrepreneurs to leverage digital banking solutions and expand credit offerings. Smart stakeholders should closely monitor compliance requirements and consider strategies to optimize liquidity management to maximize advantages in this evolving landscape.
