To: All Licensed Banks operating in the Sultanate of Oman

After Compliments,

Re: Interest on Current Accounts

1. As stated in Circular BM 703 dated 25 September 1993, banks are prohibited from paying interest on current account deposits except in the case of such accounts of the Government and quasi-Government organizations.

2. It has since been decided that in view of the substantial, long term and stable balances maintained by Government-accredited Pension Funds and the profitable use, thereof, by banks, it will be in order for licensed banks to pay interest on current account balances maintained in the names of Government-accredited Pension Funds.

3. For the purpose of clarification, the Central Bank adds that the above does not equate the Pension Fund accounts per se on par with Government accounts either for the purpose of categorization, statistical reporting or rate of interest paid.