June 18, 2023
Muscat, Sultanate of Oman
18 June 2023
The Central Bank of Oman (CBO) has launched the new national Real Time Gross Settlement System (RTGS), which operates on a 24/7 basis.
The implementation of the new system aligns with the vision of the Central Bank of Oman (CBO) to enhance the quality of national payment system services for the banking, financial, and broader society in Oman. This system empowers banks, financial institutions, government entities, and private institutions to perform convenient money transfers, even during holidays or outside of traditional banking hours.
One notable enhancement is the improved liquidity management mechanism for participants in the Real-Time Gross Settlement (RTGS) system. This feature mitigates risk by enabling participants to monitor their liquidity requirements in real-time, 24/7. The system also introduces a cutting-edge gridlock resolution mechanism, which effectively reduces settlement risk among participants. Furthermore, the system facilitates final settlement for retail payment systems on a continuous basis, including arrangements for the Treasury Single Account (TSA). These new features significantly enhance the efficiency and effectiveness of payments within Oman's banking and financial sector.
To ensure seamless integration and digitization of payment operations, the system adheres to the international standard (ISO20022) for financial transaction messages. This adoption promotes broader interoperability with payment and ancillary systems, facilitating the digitization and integration of payment processes. Security measures include the implementation of digital signatures, ensuring secure access control to the system and authorization for all processed transactions.
In line with regional initiatives for cross-border payments, the new system will integrate with the GCC payment system, AFAQ. This integration allows for cross-border payments between GCC countries by linking with the Gulf Payments Company (GPC). Additionally, the system will be integrated with the Arab Regional Cross-Border Payment System, Buna, which includes the Omani Rial as a settlement currency among other currencies in the Arab system. The plans for regional integration are slated for the next phase of development.
This system is based on CMA's RTS/X product.