In response to the Central Bank of Oman’s (CBO) appeal for banks to discourage the use of banknotes – as a precaution against the spread of the novel coronavirus (COVID-19) – local lenders have begun urging their customers to explore an array of online and digital options from the safety of their mobile phones or laptops.
A number of local banks have taken to social media to encourage their customers to use contactless payment options as an alternative to cash in light of COVID-19 related concerns associated with the use of banknotes.
It follows a circular issued by Oman’s banking sector regulator last week advising local banks to put the accent on digital channels for consumer and retail payments. “Customers should be encouraged to use mobile/net banking / online services and avoid dealing with banknotes,” Tahir Salim al Amri, CBO Executive President, stressed in the memo.
“Banks should restrict the services provided in their branches to only those that are not available through digital/electronic / online channels, with suitable prior notice to the customers,” the apex bank stated.
International medical opinion is divided over the likelihood of COVID-19 transmission stemming from the handling of banknotes. Earlier this month, The World Health Organisation (WHO), while acknowledging the infection risk, has stressed that the risk is very low. “The risk of being infected with the new coronavirus by touching coins, banknotes, credit cards, and other objects, is very low,” it said in a recent statement.
Nevertheless, out of an abundance of caution, the Sultanate’s Central Bank has urged local banks to promote digital and contactless alternatives to cash-based payments. “Banks should take suitable protective measures while handling banknotes/currencies / documents,” the Central Bank stressed in its circular. “Banks should inform customers, by various modes, about the availability of services and delivery channels,” the Executive President further noted.
All of Oman’s leading conventional and sharia-based Islamic banks have already rolled out a raft of digital and online payment channels that eschew the use of cash. National Bank of Oman (NBO) has urged its customers to substitute cash with its contactless ‘Tap and Go’ cards when making in-store purchases. “A range of everyday tasks can be completed through the app and online banking platform, including opening accounts, paying utility and credit card bills, locating branches and ATMs, applying for products such as the Easy Payment Plan (EPP), and making local and international money transfers,” the nation’s second largest lender said in a press statement.
Additionally, the Badeel prepaid card, available to both NBO and non-NBO customers, utilises ‘Tap and Go’ contactless technology, allowing users to carry out day-to-day purchases, online transactions and bill payments at over 5,000 terminals across the Sultanate, it stated.
Bank Nizwa has announced the addition of a number of new features on its e-Wallet application to help users to complete payments electronically. “The application which is a digital extension to the Bank Nizwa’s tailored Islamic solutions allows customers to send or receive instant fund transfers through their mobiles with the use of mobile numbers or nicknames of recipients. The application can also be used for bill payments, recharge of mobile balances, as well as, card less cash withdrawals from any of the bank’s ATMs. Other features for the zero-service charge application include the instant transfer of funds at retail outlets or government entities by scanning the unique QR code,” the Islamic bank said in a statement.
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