Banking & Finance

CBO Issues Circular To Oman Banks, Withdraws ‘Prize Scheme Linked Saving Deposit’

Muscat: The Central Bank of Oman (CBO) has directed all banks operating in the country to withdraw the ‘Prize Scheme Linked Saving Deposit Schemes’ from January 2022.

In a circular issued on Thursday, the apex bank said the decision has been taken “in the overall interests of the banking system and ensure enhanced effectiveness of the monetary policies.”

“After careful consideration and keeping in view, amongst others, the overall interests of the banking system and ensure enhanced effectiveness of the monetary policies, has decided to withdraw the ‘Prize Scheme Linked Saving Deposit Schemes’ with effect from January 1, 2022.”

CBO also advised banks to develop appropriate savings deposit schemes and fine-tune their fund management strategies to “ensure payment of reasonable rates of interests or profit to depositors without raising the lending rates.”