The Central Bank of Oman has implemented operational and technical enhancements to its direct debit service and launched electronic authorization for direct debit mandates through banks’ electronic banking channels. The changes are intended to enable electronic issuance, processing, and fulfillment of direct debit instructions and to make the service more accessible to individuals and businesses. The upgrade is supported by a clarified legal and operational framework under the National Payment Systems Law No. 8/2018 and its Executive Regulation, including criminal protection for beneficiaries when an irrevocable direct debit order is returned. The framework includes penalties for deliberately issuing an irrevocable direct debit order without sufficient consideration or for stopping payment without legitimate reason, and it provides for potential civil compensation claims. To encourage adoption, the central bank has decided not to impose any fees on direct debit transactions until further notice and expects the instrument to reduce cheque usage, particularly for recurring payments. The Direct Debit System and Mandate Management System were soft-launched in 2021, with implementation challenges now described as addressed. Several banks launched electronic authorization in late 2024, and other banks are expected to complete implementation during 2025.
Central Bank of Oman 2025-04-20
Central Bank of Oman upgrades direct debit service and launches electronic authorization with fee waiver
The Central Bank of Oman has enhanced its direct debit service by implementing electronic authorization for mandates through banks' electronic channels, supported by the National Payment Systems Law No. 8/2018. The framework includes legal protections and penalties for misuse, with no fees on direct debit transactions to encourage adoption and reduce cheque usage. Initially soft-launched in 2021, the system is expected to be fully implemented by banks in 2025.