A number of measures to support the roll-out of electronic payment initiatives are slated for launch this year, according to the Central Bank of Oman (CBO), in line with its broader strategy to advance the digitization of banking transactions. payment and consolidate the growth of a digital economy in the Sultanate of Oman.

These initiatives, which were accelerated during the pandemic from 2020 onwards, include plans for a direct debit system in place of recurring check payments, as well as a 24-hour fund transfer system and 7 days a week between individuals and individuals to businesses.

“The digitization of payment systems is the key initiative to achieve the goal of an inclusive digital society in the Sultanate,” said the country’s umbrella bank. “The digitization of payment systems will help provide affordable and accessible payment services that pave the way for an inclusive financial system in the country,” he said in his recently released 2020 annual report.

Noteworthy is the planned introduction of the direct debit instrument – touted as an “alternative secure payment option” which will help make the current system of issuing checks for recurring payments of rent, EMI and loan, monthly or quarterly utility bills, etc. .

In addition, the Central Bank is currently upgrading the Real-Time Gross Settlement System (RTGS) – the centerpiece of the country’s national payment system infrastructure – to enable it to operate 24/7. The upgrade will also allow for better liquidity management and better resolution of traffic jams, according to the CBO. Its planned integration with GCC’s RTGS system will also facilitate cross-border payments to recipients in the Gulf States.

At the same time, the Automated Clearing House (ACH) will operate around the clock to facilitate affordable person-to-person or person-to-business fund transfers, paving the way for instant credit services, the Central Bank noted. .

In other initiatives assessed by the CBO, it is proposed to introduce a new platform for the presentation and electronic payment of invoices nationwide. In addition, the Central Bank is exploring the possibility of outsourcing the operations of retail payment systems to a separate entity. In addition, to facilitate cross-border remittances, interconnections with various payment systems on a global scale are also being considered.

In addition, as previously reported by the Observer, the Central Bank is preparing to roll out the International Bank Account Number (IBAN) system in the Sultanate of Oman – a measure that will help speed up electronic verification of bank accounts during electronic payments and reduce the risk of errors in bank account numbers.