Today, central banks around the world continue to provide the ultimate settlement asset and strengthen their influence via a role in ownership, operation or/and oversight of key components of the financial system infrastructure. With the integration into the world economy, it is pertinent for every central bank to ensure that every national payment systems operated in the country and the risk management procedures conform to international standards.
The Central Bank of Oman (CBO) has been playing a proactive role in the overall economic development strategy of Oman; simultaneously keeping an eye over the regional and global trends shaping the world economy. The focus on economic development, necessitates the presence of safe and efficient payment systems especially given its contribution towards the financial stability, monetary policy implementation, real economic activity in the country and arresting money laundering as payment systems provide an audit trail for the transfer of funds.
Banks have been the traditional gateway to payment services and by virtue of their participation in the payment systems, have been able to provide safe, secure and affordable services to their customers.
A Payment System: is a set of instruments, procedures, and rules for the transfer of funds between or among participants; the system includes the participants and the entity operating the arrangement (BIS, 2016).