The Central Bank of Oman (CBO) has revealed a plan to introduce the International Bank Account Number (IBAN) standard, aiming to modernize the country’s financial system and promote seamless domestic and international transactions.
Through collaboration with Oman’s banking community, CBO’s IBAN project represents a significant advancement in Oman’s efforts to establish a more efficient, transparent, and globally interconnected banking system.
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IBAN is a widely recognized global standard that facilitates the identification of bank account numbers across national borders, currently utilized in over 80 countries, as stated by CBO in a post on X.
Sultanate of Oman's IBAN standard and its implementation plan | 🔢 pic.twitter.com/WjTlZDuwcE
— البنك المركزي العماني (@CentralBank_OM) March 26, 2024
By adopting the IBAN system, CBO seeks to further simplify financial transactions, enhance transparency, and streamline payment processes in Oman, ultimately boosting the overall efficiency of the banking system.
Key benefits
Additionally, CBO highlights several key benefits of adopting IBAN, including the simplification of complex account numbers and bank codes, reduced risk of errors, and increased transparency within the financial system. IBAN also enables faster processing times for both domestic and international payments, saving time for businesses and individuals alike.
According to CBO, the implementation of IBAN represents a significant stride in modernizing Oman’s financial infrastructure, enabling seamless local and international payments.
IBAN is an internationally accepted system used for sending and receiving international payments. It does not replace sort codes and account numbers but rather serves as an additional number that provides additional information to help overseas banks identify the correct account for payments.
Accommodating IBAN generation, processing
CBO has outlined a phased implementation plan for the IBAN system. Phase 1 will focus on international remittances and is scheduled for completion by the end of Q1 2024. Phase 2 will encompass local transactions and will commence after the completion of Phase 1.
Moreover, CBO emphasizes that banks operating in Oman will need to upgrade their systems to accommodate IBAN generation and processing. Thorough testing and validation across all digital banking channels are also required. Furthermore, banks will be responsible for raising awareness among their customers regarding the benefits of IBAN and offering online services for IBAN number generation and validation.
Alpha country codes
Oman’s IBAN standard will further consist of two alpha country codes, two numeric check digits, a three-numeric bank identifier, and a 16-numeric customer account number. This structure is designed to ensure clear identification of financial institutions and facilitate smoother cross-border transactions.
As the IBAN standard gains traction in Oman, CBO foresees that the country’s position in the global financial market will be strengthened, aligning it with international best practices.
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