Central Bank of Oman rolls out partial payment cheque system

Muscat: The Central Bank of Oman (CBO) has introduced the System of Partial Payment of Cheques, effective from December 15, 2025, in line with new regulatory instructions aimed at enhancing flexibility and efficiency in cheque settlements.

Under the new system, cheque beneficiaries will be allowed to receive available funds from a customer’s bank account even if the account balance is less than the cheque amount. This marks a significant shift from the earlier practice where cheques were returned unpaid in cases of insufficient funds.

The CBO said the initiative aims to strengthen financial discipline within the banking sector, improve cash flow for individuals and businesses, and reduce the likelihood of legal disputes arising from cheque returns.

The system applies to all cheques regardless of value and makes it mandatory for the cheque bearer to accept partial payment. Partially paid cheques may be re-presented to claim the remaining amount, while beneficiaries will continue to retain their legal rights for the outstanding balance in accordance with the Commercial Law and relevant provisions of the Penal Code.

Cheques eligible for partial payment include crossed or account payee cheques, bearer or order cheques, as well as cash, bearer or order cheques presented over the counter at banks.