Cheques returned due to 'insufficient funds' decline by 12.2% in Oman: CBO
Published: 07:09 AM,Sep 24,2025 | EDITED : 11:09 AM,Sep 24,2025
Muscat: The Sultante of Oman is experiencing a decline in unpaid cheques and non-sufficient funds incidents, reflecting improvement in payment reliability and stronger financial discipline, Central Bank of Oman's Financial Stability Report 2025.
However, technical errors such as stale cheques and early payments have shown a slight Total cheques presented for clearing, decreasing by 6 percent, indicating a gradual shift toward digital transactions.
Correspondingly, total unpaid cheques dropped by 13.89 percent (from 362,072 to 311,764). The share of unpaid cheques also declined from 9.8 percent in 2023 to 8.9 percent in 2024, reflecting improved controls and overall better financial health
In 2024, the primary reasons for unpaid cheques also saw significant reductions. Cheques returned due to “insufficient funds’’ fell by 12.2 percent, suggesting better account balance management by customers and less use of cheques.
The most notable declines were recorded in “refer to drawer” by 43.7 percent, and “payment stopped/payment stopped awaiting confirmation” by 41.9 percent. Cases involving “account closed/frozen” declined by 29.1 percent, pointing to enhanced banku0002customer engagement and fewer inactive or abandoned accounts.
Financial institutions are continuing to enhance their cheque clearing frameworks, which is contributing to the reduction in unpaid cheques. In parallel, the rising adoption of digital transactions and the implementation of more robust compliance practices are further supporting payment efficiency. As customers increasingly manage their accounts more effectively, the incidence of bounced cheques due to insufficient funds is expected to decline further, the report said.