To: All Licensed Banks Operating in the Sultanate of Oman

Subject: Penal Charges Levied by Banks on Dishonoured Cheques

1. It has been brought to the notice of the Central Bank of Oman that certain banks, when performing the role of Collecting Bank, levy a penal charge on customers who present the cheques when such cheques are dishonoured.

2. The Board of Governors of the Central Bank of Oman considered this issue at its meeting held recently and has directed that with immediate effect, no bank shall levy any penal charges on customers who present to them cheques for collection in the event of dishonour of such cheques.

3. All banks shall comply accordingly.