CBO deploys HP solution

While member banks will be able to view their balances throughout the day and thereby better manage their funds and cash flows, the system also provides CBO with the necessary tools to manage the national liquidity position more effectively, as it offers minute-by-minute information on each bank's position during the day.

  • E-Mail
By  Angela Prasad Published  February 7, 2005

HP, together with Imtac, has successfully completed phase one of its solution implementation for the Central Bank of Oman (CBO) to implement a real time gross settlement (RTGS) system, it was announced today at the Channels 2005 event in Dubai. The completion of phase one reflects a successful partnership following the contract signing in 2004 by HE Hamood Sangour Al Zadjali, executive president of CBO, Amr Salem, general manager, Gulf and Eastern Mediterranean, HP, and HH Sayyid Tarik bin Shabib Al Said, director of Renaissance Services on behalf of Imtac, an HP partner in Oman. Revealing details of the project, Al Zadjali says the bank is driving an industry initiative aimed at establishing a contemporary payment system infrastructure in Oman. “The implementation of the new inter-bank settlement system which is based on real time gross settlement principles, will enable all Omani banks to exchange payments electronically in real time between themselves and CBO. These fund transfers will also be final and irrevocable, thereby bringing the Omani system in line with international requirements for national payment systems,” he states. CBO's current systems for inter-bank transfers and settlements are affected by off-line cheque clearing and end-of-day telexes and swift messages. With the implementation of RTGS, all transactions will be conducted in real time. The RTGS application will be hosted on a HP solution. “The introduction of this system catapults CBO into a select group of central banks in the Middle East that have the capability to provide real time inter-bank settlements. RTGS is a sophisticated payment mechanism in which inter-bank and other critical payments are directly entered into the system and settled item by item across the banks’ current accounts held with CBO,” explains Divesh Loomba, territory account manager at HP Oman. While member banks will be able to view their balances throughout the day and thereby better manage their funds and cash flows, the system also provides CBO with the necessary tools to manage the national liquidity position more effectively, as it offers minute-by-minute information on each bank's position during the day. “What is more, RTGS will form the core of CBO's ambitious plans to implement a National Payment System over the next few years, which will have a direct impact on how money is managed in Oman's local economy,” he adds. CBO has confirmed that plans are in place to introduce technology to all facets of the national payment system. “We are working with our chosen partners to automate areas like clearing house, payment switch and small payment transactions, and these projects are being implemented as per a priority list that is already in place. Commercial banks in Oman as well as their customers are already reaping tremendous benefits from these projects,” says Al Zadjali.

Add a Comment

Your display name This field is mandatory

Your e-mail address This field is mandatory (Your e-mail address won't be published)

Security code