MUSCAT : The number of cheques in Oman returned for “insufficient funds” fell by 12.2% in 2024, marking a sharp improvement in account balance management and reflecting a broader shift toward digital payments, the Central Bank of Oman (CBO) said in its annual Financial Stability Report.

The central bank noted that dishonoured cheques due to insufficient funds historically the leading cause of bounced payments declined sharply last year as households and businesses kept closer watch on their balances. The improvement, it said, highlights stronger financial discipline and a broader shift toward electronic payments.

Overall, the number of unpaid cheques dropped 13.9% to 311,764 in 2024, down from 362,072 a year earlier. The share of unpaid cheques in the system also fell from 9.8% to 8.9%. Total cheques presented for clearing decreased by 6.0% to 3.5 million, compared with 3.7 million in 2023, underscoring the ongoing move toward digital transactions.

Other categories of cheque rejections also saw steep declines. “Refer to drawer” cases fell 43.7%, while “payment stopped or awaiting confirmation” dropped 41.9%. Instances linked to closed or frozen accounts declined 29.1%, pointing to fewer dormant accounts in the system.

The CBO attributed the overall reduction in unpaid cheques to enhanced cheque-clearing frameworks, wider adoption of digital banking, and stronger customer engagement. “The reduction in insufficient funds cases shows people are managing their accounts more responsibly while also moving toward faster and safer digital payment channels,” a Muscat-based banker said, commenting on the report.

The central bank said the trend is expected to continue as mobile banking and instant transfer platforms expand, reducing systemic risks and improving trust in Oman’s payment system.

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