Central Bank of Oman Strengthens Digital Economy with Fee Waiver for Local Transfers Starting July 2026
Muscat: The Central Bank of Oman (CBO) has announced significant reforms to the National Payment Systems fees, aligning with the Royal Directives of His Majesty Sultan Haitham bin Tarik. These reforms aim to enhance government efficiency, improve the business environment, and stimulate economic growth through digital transformation.
Comprehensive Fee Waivers for Digital Transfers
Effective July 1, 2026, the CBO will waive fees for local digital fund transfers made through Oman’s National Payment Systems. This initiative specifically targets retail customers and small and medium-sized enterprises (SMEs), allowing them to conduct transactions without incurring additional costs.
The fee waivers apply to transfers executed via the Real-Time Gross Settlement System (RTGS), Automated Clearing House (ACH), and the Instant Payment System (MPCSS) through digital banking channels, including e-wallets. This strategic move is designed to make digital payments more affordable and accessible across the Sultanate of Oman.
Enhancing Digital Payment Adoption
The CBO’s initiative reflects its commitment to fostering a less-cash economy while promoting the use of digital payment channels. By eliminating fees for local digital transfers, the CBO aims to encourage individuals and SMEs to transition from traditional paper-based transactions to more efficient digital methods.
The Central Bank has assessed the operational costs associated with cash and cheque transactions and has directed licensed banks and Payment Service Providers (PSPs) to implement zero charges for local digital transfers. This decision is expected to alleviate the administrative burden on businesses and enhance operational efficiency.
Benefits for Retail Customers and SMEs
Retail customers and SMEs will benefit from free RTGS and ACH transfers across all channels, significantly reducing the cost of digital fund transfers. Additionally, Person-to-Person (P2P) payments through the Instant Payment System will remain free for all customers, regardless of the beneficiary’s banking institution.
For private sector employers under the Ministry of Labour’s Wage Protection System (WPS), the CBO has simplified fees. Employers will incur a maximum charge of OMR 1 per month for processing salary payment files, regardless of employee count or beneficiary banks. This measure aims to streamline salary payments and reduce administrative burdens.
Support for Micro-Businesses and Merchants
In a move to support micro-businesses and small retailers, the CBO has reduced the maximum Merchant Service Fee (MSF) for QR-code-based “Scan and Pay” transactions from 0.75% to 0.50% of the transaction value, capped at OMR 2 per transaction. This reduction is anticipated to lower payment acceptance costs for merchants and promote the adoption of QR payments.
The reforms are part of a broader set of initiatives aimed at strengthening Oman’s national payments infrastructure, including the ongoing development of the National Payment Systems and the introduction of the Maal domestic card scheme.
Strengthening the National Payment Ecosystem
The CBO has also introduced Direct Debit and E-Mandate services as secure alternatives to cheque-based payments. These services are provided free of charge to customers, further encouraging digital payment adoption.
The regional connectivity framework includes AFAQ for cross-border transfers and payments, as well as GCCNet for card payments across the Gulf Cooperation Council (GCC) region. The CBO will continue to collaborate with licensed banks and PSPs to ensure effective implementation of the revised fees and charges.
Monitoring and Future Measures
The CBO plans to monitor digital payment adoption throughout 2026 to evaluate the impact of these reforms on customer behavior, cash usage, and overall payment service efficiency. Based on observed trends, the Central Bank may consider additional measures to support the national transition toward digital payments.
To ensure customers are informed about the revised charges and the benefits of digital payment channels, the CBO has advised banks and PSPs to launch comprehensive awareness campaigns across various media platforms.
His Excellency Ahmed Al Musalmi, Governor of the Central Bank of Oman, emphasized that this decision marks a significant milestone in promoting digital payments as the preferred mode of financial transactions in Oman. He reiterated the CBO’s commitment to strengthening the national payment ecosystem and supporting financial inclusion.
Source: www.zawya.com
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Published on 2026-06-17 15:17:00 • By the Editorial Desk
