Oman introduces partial cheque payments to reduce payment bounces

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.

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.

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.