Bank Nizwa Implements Partial Cheque Payment Framework to Support Cash Flow

Bank Nizwa,  the leading and most trusted Islamic bank in the Sultanate of Oman, has announced the implementation of the Partial Payment of Cheques service in line with the Central Bank of Oman’s guidelines on partial cheque payments. This national initiative aims to enhance cash flow for individuals and businesses and reduce the likelihood of legal disputes arising from returned cheques.

“Sound payment mechanisms are a cornerstone of economic confidence, as they protect the integrity of commercial transactions while minimizing unnecessary friction in day-to-day operations. A framework that emphasizes settlement over outright rejection helps maintain working capital cycles, encourages responsible financial behavior, and strengthens trust between counterparties. Bank Nizwa considers system-wide initiatives of this nature essential for building a resilient financial ecosystem that supports productive economic activity and long-term stability.”

– Mr. Mohammed Iqbal Al Balushi, Assistant General Manager of Operations, Bank Nizwa

Under the Central Bank of Oman’s Partial Payment of Cheques system, if a cheque is presented and the drawer does not have sufficient funds to cover its full value, the bank will pay the available amount instead of rejecting the cheque entirely. This system allows the beneficiary to receive a portion of the funds that would previously have been unavailable, while the remaining amount remains due for later settlement or can be claimed legally, in accordance with the provisions of the Commercial Law.

The framework applies to various cheque types, including crossed or account-payee cheques within the same bank, crossed or account-payee cheques processed through the national clearing system across different banks, as well as bearer or order cheques when deposited into an account or presented for encashment. It does not apply to foreign currency cheques drawn on banks outside the Sultanate, OMR cheques presented by foreign correspondent banks, or inter-bank cheques used for settlement purposes.

In accordance with the guidelines, partially paid cheques will be formally documented, including the issuance of a balance certificate to provide clarity on the outstanding amount. The framework also establishes defined reporting requirements for Mala’a, capturing the partially paid status, the amount settled, and the remaining balance, with such cheques continuing to be treated as outstanding until fully settled in line with the prescribed reporting procedures.