To: All Licensed Banks Operating in the Sultanate of Oman

Subject: Dishonour of Cheques

It has been brought to our attention by some of the banks that of late the Royal Oman Police refuse to entertain requests for initiating prosecutive action for cheques returned for non-availability of funds unless such a reason is unmistakably conveyed in the Memo returning the cheque. It is required that the Memo, containing the necessary particulars of the cheques in such cases, is to indicate the reason clearly with such narrations as “Insufficient Funds/Arrangements” and is also to be duly authenticated with the bank’s stamp/seal.

The Central Bank of Oman has considered the matter in detail and will have no objection to banks complying with the above requirement as it will only facilitate access to the available rightful legal remedies for the aggrieved parties.

All the banks in the Sultanate are required to note the above authorization for cheques returned genuinely for non-availability of funds.