Oman Banking Reform: Partial Payment of Cheques Now Permitted

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Central Bank of Oman has implemented the Partial Payment of Cheque Clearing System, effective from 15 December 2025, as part of its efforts to enhance banking efficiency and reduce cheque-related disputes.

Under this system, if a cheque is presented for payment and the drawer’s bank account does not have sufficient funds to cover the full cheque amount, the cheque will no longer be returned unpaid. Instead, the beneficiary will receive the available balance in the account as a partial payment.
Previously, cheques with insufficient funds were rejected entirely, leading to cash flow disruptions, delays in business transactions, and legal challenges. The new approach ensures that beneficiaries gain immediate access to available funds rather than receiving nothing.

The system applies to all cheque values and covers cheques drawn on licensed banks in Oman, including crossed cheques, account payee cheques, and cash, bearer, or order cheques. Acceptance of partial payment by the beneficiary is mandatory.
Importantly, the beneficiary’s legal rights remain fully protected. In accordance with Article (566) of the Commercial Law and relevant provisions of the Penal Code, the beneficiary retains full legal recourse against the drawer for the outstanding amount, which may also be recovered by re-presenting the cheque at a later date.

Overall, this reform is expected to improve cash flow, reduce disputes, and strengthen confidence in Oman’s financial system.