In a significant step towards modernizing its financial sector, the Central Bank of Oman (CBO) has announced that starting July 2025, the use of International Bank Account Numbers (IBANs) will be mandatory for all domestic fund transfers. This move is expected to enhance the accuracy, efficiency, and security of electronic payments within the Sultanate.
Whether you’re a business owner, a banking professional, or an everyday customer, this change will affect how you send and receive money in Oman. Here’s what you need to know.
What is IBAN?
The International Bank Account Number (IBAN) is a standardized system of identifying bank accounts across countries. It was initially adopted by European banks but has since become a global standard for improving the efficiency and accuracy of international and now even domestic payments.
An IBAN typically includes:
Country code (e.g., OM for Oman)
Two check digits
A unique bank identifier and account number
The goal? Fewer errors, faster transfers, and better cross-border compatibility.
Why is Oman Making IBAN Mandatory?
The CBO’s decision to enforce the IBAN system for domestic transfers is part of a broader push to align with international best practices and digitize the financial sector. Here are the key reasons behind this move:
1. Enhanced Payment Accuracy
With traditional account numbers, small errors in inputting digits can lead to failed transactions or money being sent to the wrong person. IBAN includes check digits that help detect such errors before the transfer is processed.
2. Faster Processing Times
Banks and financial institutions can process IBAN-enabled payments more quickly, reducing delays in fund transfers and improving customer experience.
3. Greater Efficiency for Businesses
For companies that handle a high volume of payments—such as payroll or supplier transactions—IBAN simplifies bulk transfers and reconciliations, saving time and reducing manual work.
4. International Alignment
By adopting IBAN for domestic transactions, Oman’s banking system becomes more compatible with international systems. This is especially important for a trade-friendly country like Oman.
What This Means for Bank Customers in Oman
Starting from July 1, 2025, all individuals, businesses, and government entities in Oman will need to use IBANs when transferring money within the country. Here’s what you should do to prepare:
Update your bank account details: Get your IBAN from your bank or online banking portal.
Notify your contacts: Inform your employer, clients, and suppliers of your IBAN to avoid payment issues.
Update payment templates: Modify saved account details in your online banking or accounting systems to include IBANs.
Learn the format: Oman’s IBAN is 23 characters long, starting with “OM” followed by your unique account identifier.
Transition Period and Support
The CBO has planned a comprehensive transition period leading up to the July 2025 deadline. Banks in Oman are already working on awareness campaigns and offering online tools to help customers convert their existing account numbers into IBANs.
You can expect:
Notifications from your bank
IBAN converters on banking apps and websites
Workshops and educational materials for businesses
During the early phase, both IBAN and non-IBAN transfers will be accepted, but starting July 2025, non-IBAN transactions will be rejected by the banking system.
A Step Towards Smarter Banking
This mandate is more than just a technical change—it’s a signal of Oman’s broader commitment to digital transformation and financial inclusion. The use of IBAN not only improves banking operations but also sets the stage for future innovations like open banking, real-time payments, and AI-powered financial services.
As Oman’s economy grows and integrates further with the global financial ecosystem, such measures are crucial to keeping pace with global standards.
