To: All Licensed Banks operating in the Sultanate of Oman

Subject: Negotiable Certificates of Deposits

After Compliments,

1. Proposal

   With a view to improving the competitiveness of banks and extending the range of services offered by banks to their customers, it is hereby proposed to allow banks to issue Negotiable Certificates of Deposit (NCD) within certain regulatory framework, the main features of which are spelt out below:

2. Definition

   A Negotiable Certificate of Deposit issued in the Sultanate of Oman is an instrument which consists of an acknowledgment by a bank, licensed under Oman Law No. 7/1974, the Banking Law and which is authorised by the Central Bank of Oman to issue CDs, of the receipt of money and an engagement by the bank to repay such money on a specified date or on demand to a specified person or to bearer together with any interest accruing on the instrument.

3. Application for issues