Oman introduces partial cheque payments to reduce payment bounces

CBO mandates partial cheque payouts to ease cash flow, reduce disputes

Last updated:
2 MIN READ
cheque ask the law wrong signature-1680231941899
Cheques in Oman will no longer bounce fully if funds are short

Dubai: The Central Bank of Oman launched a partial payment system for cheques effective December 15, covering all types regardless of value. Beneficiaries must now accept whatever funds sit in the drawer's account if it's less than the cheque amount, rather than seeing the payment bounce entirely.

The move targets better financial discipline, smoother cash flows for businesses and individuals, and fewer court battles over returned cheques. Banks across the Sultanate activated the system immediately, with upgrades to the electronic clearing platform handling interbank partial settlements.

Covers every cheque type

The rules apply universally to crossed or account-payee cheques, cash cheques, bearer cheques and order cheques, including those presented over bank counters. Beneficiaries have no choice but to take the partial amount when funds exist, but they can re-present the cheque later for any balance owed.

Legal rights stay intact under Article 566 of Oman's Commercial Law and Penal Code provisions, letting holders pursue the remainder through courts if needed. Banking officials expect this to relieve short-term liquidity squeezes without leaving payees empty-handed.

Eases business pressures

For companies facing temporary cash crunches, the system prevents full cheque returns that often spark legal headaches. It forces partial recovery upfront, preserving some transaction flow while keeping issuers accountable for shortfalls. The CBO stressed this bolsters overall banking efficiency and financial stability.

Small firms and traders stand to gain most, as even modest account balances now convert to usable cash instead of triggering disputes. Re-presentation rights ensure no one walks away permanently shortchanged.

The electronic cheque clearing network now supports partial payments seamlessly among Oman's licensed banks.

Nivetha Dayanand is Assistant Business Editor at Gulf News, covering aviation, financial markets and commodities. A business and financial journalist with a strong interest in multimedia storytelling, she regularly takes complex financial and economic subjects beyond the written word, producing explainer videos that make them easier for a wider audience to understand. Nivetha has interviewed senior policymakers, business leaders and global financial figures both on and off camera. Her past guests include UAE Minister of Economy and Tourism Abdulla bin Touq Al Marri, Khaled bin Alwaleed Al Saud, a member of the House of Saud and the founder and CEO of KBW Ventures, Jihad Azour, Director of the Middle East and Central Asia Department at the International Monetary Fund and Indian ministers Hardeep Singh Puri and N. Chandrababu Naidu. She has also hosted and moderated panels, conferences and awards shows, bringing her newsroom experience to live conversations on business, finance and the economy. An Erasmus Mundus journalism alum, Nivetha is drawn to stories that affect people directly and to reporting that gives a platform to voices that might otherwise go unheard. She was among the first journalists to speak to Petrofac employees in the UAE about unpaid salaries, broke the news of the planned demolition of Dubai’s well-known “Toyota Building”, and helped set the record straight on widely circulated claims that a giant replica of the Moon was coming to Dubai. More recently, her exclusive interview with EDGE Group CEO Hamad Al Marar revealed how the UAE-based defence group deployed its systems along the country’s shore border and established a geofence around the UAE within 48 hours of the February 28 escalation. Prior to joining Gulf News, Nivetha worked at ITP Media, where she helped launch Finance Middle East, a new publication covering the region’s financial sector. Her role spanned reporting and editing, video production, interviews and events. Across print, digital, and video, she focuses on finding the people behind business stories and explaining why those stories matter to the audience reading or watching them.

Sign up for the Daily Briefing

Get the latest news and updates straight to your inbox