MUSCAT: In what could be a major development in the banking sector, the Central Bank of Oman is considering to introduce “direct debit instrument” which is an alternative secure payment option that will help in replacing cheque payment options for loan EMIs, bills and rent.

In its 2020 Annual Report, the apex bank said it is working towards enhancing and introducing a host of digital payment methods. “Digitalization of payment systems is the key initiative towards achieving the objective of inclusive digital society in the Sultanate. Digitalization of payment systems will help providing affordable and accessible payment services that paves the way to achieve inclusive financial system in the country,” CBO noted.

CBO is also working to enhance the RTGS system to operate 24X7, along with many other features including enhanced liquidity management and better gridlock resolution. It will also be connected to the GCC-RTGS System for cross-border payments to GCC countries.

In an interesting move, CBO is also working to introduce International Bank Account No (IBAN) in the Sultanate “to speed-up electronic verification of bank accounts when making electronic payments and reduce the risk of errors in bank account numbers.”