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Payment and Settlement Systems 


Introduction


A Payment and Settlement System refers to set of instruments and tools for making payments among the system participants, processes, rules and communication network for transmission of payment instructions between the payer and payee and organizational and institutional arrangement governing such payments.

The Central Bank of Oman recognizes the importance of well-organized payment and settlement systems for the following reasons:

  • They complement a financial system in its effective functioning due to their ability to ensure efficient and cost effective discharge of claims and liabilities arising out of economic transactions, and hence are partners in economic growth.

  • They help in reducing the credit/counterparty risk in the financial system

  • They provide a platform for monetary policy operations for effective and efficient transmission of monetary impulses

  • They provide important statistical inputs useful for insight into the economic activity for the financial system supervisors and analysts

  • They possess a huge systemic value and hence their orderly functioning is of critical significance for financial and economic stability