MUSCAT : Oman is working on modalities to introduce partial fulfillment of cheques, which could be a great leap forward in updating the banking laws in the country, in sync with the global best practices.

Speaking exclusively to The Arabian Stories, a senior banking official said “such a mechanism” would reduce cheque bounce cases and ensure that maximum possible cheque value is collected in the fastest and simplest way possible. However, the official did not specify when such an amendment would be implemented. 

Some countries, including the United Arab Emirates (UAE), have initiated the strategic implementation of partial fulfillment of cheques, where it is possible to cash a cheque for an amount less than the full amount written on the cheque. While typically a cheque would bounce if the full amount to honour is not available in the drawer’s account, if the amendment is introduced, banks will be required to fulfill partial amounts of the cheque, equal to the amount available in the drawer’s account – unless the cheque bearer rejects the option for partial payment.

“An unpaid cheque or bouncing cheque is considered a serious offense and can lead to legal consequences. This system of partial fulfillment of payment would help in reducing such cases to an extent,” the official informed. 

It is worth noting that in 2022, 387,000 cheques bounced, compared to 399,000 unpaid cheques in 2021. The percentage of unpaid cheques to the total cheques presented in the system decreased from 10.6% in 2021 to 10.3% in 2022. However, with the rise of electronic payments, there is a notable decrease in the use of cheques for payments since 2018; it has fallen from about 4.7 million to 3.8 million in 2022. 

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