Fee waiver announced for digital transfers

Central Bank of Oman (CBO) has announced comprehensive reforms to the National Payment Systems fees.

Effective July 1, 2026, the reforms will waive fees on local digital fund transfers conducted through Oman’s National Payment Systems for retail customers and small and medium-sized enterprises (SMEs).

This applies to transfers via the Real-Time Gross Settlement System (RTGS), Automated Clearing House (ACH), and Instant Payment System (MPCSS), when processed through digital banking and payment channels, including e-wallets.

The CBO said this step is part of its plan to make digital payments cheaper, easier, and more widely used across Oman, supporting the country’s move toward a cashless and cheque-free economy.

As part of wider reforms, the central bank has already reduced many fees related to digital transactions offered by banks and payment service providers. The goal is to remove cost barriers for individuals and SMEs and encourage the use of secure digital payment methods.

After discussions with stakeholders and reviewing the higher cost of cash and cheque transactions, the CBO instructed banks and payment providers to set local digital transfers for retail customers and SMEs at zero cost. This aims to move people away from paper-based banking and branch visits toward faster digital services, while also reducing bank operating costs.

Under the new system, RTGS and ACH transfers will be free for all eligible users. Person-to-person (P2P) payments through MPCSS using mobile numbers or aliases will also remain free regardless of the bank or provider.

For private companies under the Ministry of Labour’s Wage Protection System (WPS), salary payment processing fees will be limited to OMR 1 per month, no matter how many employees or salary files are handled. This is meant to reduce administrative costs and ensure timely digital salary payments.

For small merchants, the Merchant Service Fee (MSF) for QR “Scan and Pay” transactions has been cut from 0.75% to 0.50%, with a maximum of OMR 2 per transaction. This is intended to make QR payments cheaper and more attractive for SMEs.

These changes are part of broader efforts by the CBO to strengthen Oman’s payment system, including the Maal domestic card scheme, which has reduced issuance costs and merchant fees. Other services like Direct Debit and E-Mandate have also been introduced to replace cheques and recurring payments at no cost to users.

Overall, these reforms are designed to improve efficiency, reduce costs for banks, and support the growth of digital payments in Oman. The system also connects with regional networks like AFAQ for cross-border transfers and GCCNet for card payments within the Gulf region.

The CBO will continue working with banks and service providers to implement the new fee system and monitor its impact in 2026, including changes in customer behavior, cash use, and cheque transactions. Further reforms may be introduced based on these results.

Banks and payment providers have also been asked to run awareness campaigns to inform people about the new changes and encourage digital payment use.

This initiative reflects the CBO’s goal of building a modern, efficient, and inclusive financial system that supports Oman’s long-term Vision 2040 development plan.