Decline in Cheques Returned for Insufficient Funds by 12.2%: What This Means for Businesses and Investors in Oman
Muscat: The Sultanate of Oman is witnessing a decline in incidents of unpaid cheques and insufficient funds, indicating enhanced payment reliability and improved financial discipline, according to the Central Bank of Oman’s Financial Stability Report 2025.
The report highlights a 6 percent decrease in the total number of cheques presented for clearing, reflecting a gradual shift towards digital transactions. Correspondingly, unpaid cheques have dropped by 13.89 percent, falling from 362,072 in 2023 to 311,764 in 2024. The proportion of unpaid cheques also decreased from 9.8 percent in 2023 to 8.9 percent in 2024, signaling strengthened financial controls and overall better financial health.
In 2024, the primary causes of unpaid cheques also saw significant reductions. Cheques returned due to insufficient funds declined by 12.2 percent, suggesting improved account balance management by customers and reduced reliance on cheques. The most notable decreases were observed in cheques marked “refer to drawer,” which fell by 43.7 percent, and those with “payment stopped/payment stopped awaiting confirmation,” which dropped by 41.9 percent. Incidents involving “account closed/frozen” declined by 29.1 percent, indicating enhanced bank-customer engagement and fewer inactive or abandoned accounts.
Financial institutions continue to strengthen their cheque clearing systems, contributing to the decrease in unpaid cheques. Simultaneously, wider adoption of digital payments and the implementation of stricter compliance measures are further boosting payment efficiency. As customers increasingly manage their accounts responsibly, the occurrence of bounced cheques due to insufficient funds is expected to decline further, the report concludes.
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The decline in unpaid cheques and improved payment reliability signal a strengthening financial discipline and enhanced banking efficiency in Oman. For businesses, this trend reduces credit risk and improves cash flow predictability, while the shift toward digital transactions presents significant opportunities for fintech innovation and streamlined payment solutions. Smart investors and entrepreneurs should prioritize digital payment platforms and compliance-enhancing technologies to capitalize on this evolving financial landscape.
