MUSCAT: Oman is working to introduce regulations to allow partial fulfillment of payments to reduce cheque defaults, The Arabian Stories has learnt.

The Central Bank of Oman (CBO) is working jointly with other government entities to introduce this system. Previously, cheques in Oman had to be paid in full upon presentment. The new rules will permit banks to accept and process cheques even if the payer’s account does not have sufficient funds to cover the full amount. The bank will then debit the available balance from the account and the payee can choose whether to accept the partial payment or reject the cheque entirely. “In some countries, partial fulfillment of cheques has been introduced as an alternative measure,” CBO said.

“This is done to provide more flexibility for both businesses and individuals when managing their cash flow and account balances. The partial fulfillment option will reduce the number of cheque defaults and provide a more efficient payment system overall,” CBO added.

The volume of unpaid cheques within the system declined from 387,000 in 2022 to 362,000 in 2023. The majority of unpaid cheques, in terms of volume, are returned due to financial reasons rather than technical reasons. “Specifically, “Insufficient Funds” remains the leading cause behind unpaid cheques, with a total volume of 291,444, accounting for 80.5 percent of all unpaid cheques. This is followed by “Account Closed / Frozen / Transferred”, totaling 31,614 cheques (8.73 percent),” CBO said.

It’s important to note that a bounced cheque or having an unpaid cheque is considered a serious offense in Oman and may result in legal consequences, including fines and imprisonment.

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