- This document sets out the terms and conditions on which the Bank will provide the Customer with an Account.
- The general terms and conditions (General Terms) are incorporated into these terms and conditions of accounts (Terms and Conditions of Accounts).
In the event that a conflict arises between the Terms and Conditions of Accounts and the General Terms, the Terms and Conditions of Accounts shall prevail.
- Capitalised terms used but not defined in these Terms and Conditions of Accounts have the meanings set out in the General Terms.
- Account means any bank account (including sub-account, current account, savings deposit account, investment account) held in the name of the Customer with the Bank.
- Account Currency means the currency in which an Account is denominated.
- Account Opening Application Form means the Bank's application form which the Customer signs to open and operate an Account.
- ATM Service means services offered by the Bank to the Account holders as per the terms and conditions for ATM Service prescribed by the Bank from time to time.
- Cash Deposit means a deposit made by cash or electronic transfer.
- Collection means for any Non-Cash Deposit, the process where the Bank obtains or attempts to obtain payment in cleared and unconditional funds from the relevant drawer/payer and Collect has the corresponding meaning.
- Deposit means any deposit of money made by the Customer or on the Customer's behalf into or for an Account.
- Internet Banking Service means the service to be provided by the Bank, which would enable the Customer to obtain information from and give instructions to the Bank by logging on to the Bank's website.
- Non-Cash Deposit means a Deposit made other than by cash or electronic transfer.
- Telephone Banking Service means the service to be provided by the Bank, which would enable the Customer to obtain information from and give instructions to the Bank in respect of their Account through telephone.
- Withdrawal means any withdrawal or transfer made by the Customer or on the Customer's behalf from or in relation to an Account.
- The Bank will accept for deposit into the Account, Cash Deposit or Non-Cash Deposit.
- The Bank will credit the relevant Account with an amount equivalent to any Cash Deposit. The amount of a Non-Cash Deposit will be credited to the Account when presented to the Bank for collection but the Customer will not be entitled to withdraw or transfer the amount credited before the Bank receives full and final payment unless the Bank otherwise permit.
- Deposits by third party into the Customer's Account may be accepted without any responsibility by the Bank.
- The Bank may decline to credit the Customer's Account with the value of any Non-Cash Deposit received standing uncleared. In such event, the Bank will return such Non-Cash Deposit to the Customer or, if requested by the Customer, re-present such Non-Cash Deposit for collection.
- If the Deposit slip accompanying a Non-Cash Deposit contains errors or omissions, the Bank may amend the Deposit slip. The Bank's amended version is conclusive for all purposes.
- The Customer represents and warrants that they have full legal title to the Non-Cash Deposit and accept full responsibility for the authenticity, validity and correctness of signatures, endorsements and particulars appearing on the Non-Cash Deposit.
- Without affecting the Clause on Limitation of Liability in the General Terms, the Bank is not liable for any Loss caused by any negligence or wilful misconduct or the insolvency of any correspondent bank or the Bank's agent.
- Except where agreed to the contrary between the Customer and the Bank, if the Bank needs to convert any Deposit into the Account Currency, the Bank will use either its prevailing exchange rate or, if unavailable, the Bank will specify a reasonable rate. The Customer must pay the Bank's usual charges for such conversion.
- The Customer must pay any charges imposed by any other bank on the Customer or the Bank for any Transaction.
- The Customer must remain the owner of all credit balances held in an Account, and must not grant any rights, security or other interest to any third party without the prior written consent of the Bank.
- The Bank will only allow a Withdrawal from an Account where:
- there are enough funds in the Account to cover the Withdrawal; and
- the Customer completes the Bank's prescribed form.
- Withdrawal(s) can be made by the Account holder or by an authorised agent who is appointed after completing the required documentation required by the Bank. Cash withdrawals from Savings Account and Term Investment Account shall be done by using the Bank's forms or the ATM card or subject to the term of each account type. Cash withdrawals from the Current Account shall done by using the Bank's forms, cheques issued by the Bank or ATM card.
- The Bank will upon the Customer's instructions accept and act upon the Customer's claims for payments to the Customer from persons who have duly authorised and instructed their bankers to debit their accounts and transfer the amount debited through a direct debit or other appropriate clearing system to the credit of the Customer's nominated Account with the Bank.
- Account holders who cannot sign their names (blind/illiterate customers) shall produce a proper identification, acceptable to the Bank, by using the fingerprint and stamp (if any) before drawing any amount (applicable to individual Account only). For the benefit of the blind/illiterate customers, the Bank will not issue cheque book or ATM Card for them except through an authorised agent.
- Subject to the terms of the Current Account:
- if the Customer wants the Bank to dishonour any cheque or cashier’s order that the Customer has drawn on its Account, the Customer must notify the Bank in writing and provide all relevant information; and
- the Bank will try to comply with the Customer's request in clause 5.1, the Bank is not responsible if there is not enough time to act on the Customer's request or the cheque or cashier’s order has already been honoured.
- The Customer shall indemnify the Bank on demand against any Loss arising from, or incurred in connection with the attempted or actual dishonouring of any cheque or cashier’s order that the Customer have drawn on his/ her Account pursuant to clause 5 above and for the avoidance of doubt, this indemnity is independent of the Customer's other obligations under the Agreement and for the further avoidance of doubt continues after such Agreement ends.
- The Customer's Account must not be overdrawn.
- The Customer must repay any debit balance on an Account on demand.
- Any overdrafts that the Bank approves for an Account will be subject to additional terms to be drafted at the Bank's discretion and to be set out in a separate document to these terms.
- For the avoidance of doubt this Clause 5 shall apply to all types of Accounts.
Correspondence and Account Details
- Unless otherwise agreed, the Bank will send Customers their Account statements and advices (Account Statements) in the manner and frequency according to the Bank's customary procedures.
- Unless the Customer gives prior notice in writing, the address set out in the Account Opening Application Form shall be the approved address for dispatching by mail the Account Statement, notices, advices or notification to the customer.
- The customer shall inform the Bank in writing in case of a change of any of the Customers' particulars set out in the Account Opening Application Form.
- The Bank may stop sending the Account Statement, if returned twice to the bank as undelivered.
- The Customer shall have the right to ask for an additional copy of the Account Statement at Customer's own expense.
- The Bank reserves the right to destroy any Account Statement not collected by the Customer within 3 months. If the Bank does not receive any objection from the Customer within 15 days from the date of dispatch of advice for the Account Statement, then such Account Statement shall be deemed correct. The Bank shall not be liable for any Loss arising from or in connection with any such mistakes.
Responsibility for Payment Instruments
If the Bank is liable under the General Terms, its liability is limited to the face amount of the Payment Instrument. Customers are responsible for and agree to indemnify the Bank on demand for any Loss that the Bank may incur where the Bank acted on a Payment Instrument even if:
- there was a mistake in the Payment Instrument; or
- there were delays when the Payment Instrument was sent or received.
ATM/ Debit Cards
- ATM/ Debit Cards will be issued to the Customer for the type of Account determined by the Bank.
- The ATM/ Debit Card (Card) is and will continue to remain the property of the Bank at all times and must be returned to the Bank immediately if so requested by the Bank.
- The Card is to be used with a PIN which is not to be disclosed by the Customer to anyone under any circumstances.
- Use of the Card for any transaction shall beat the sole risk of the holder of the Card (Cardholder) and the Cardholder confirms to assume any and all risks incidental to or arising out of use of the Card.
- The Bank has the right to debit the Customer's Account with any charges or expenses in connection with the use or replacement of such Card.
- The Card may be delivered at the Account holder's risk, by courier to the address notified by the Account holder or the same may be collected personally at the Bank's branch as decided by the bank. In either mode selected by the Account holder, the Account holder will be required to provide acceptable means of personal identification as determined by the Bank from time to time.
- Each banking transaction attempted or made with the Card (Card Transaction) will be subject to approval of the Bank.
- The Bank reserves the right to approve or decline any Card Transaction and will take into account all previous payments that have been authorised, made or agreed to be made from the Account, whether or not such payments have actually been deducted from the Customer's Account.
- Card Transaction approval will be based on the funds available in the Account and will be declined if sufficient funds are not available in the Account.
- If, for any reason whatsoever, the Customer's Account is debited in excess of the available funds by use of the Card, the Account holder shall be responsible for immediately meeting any such shortfall.
- In the event of the Account holder fails to comply with clause 10, the Bank reserves the right to cancel the Card and/or debit any outstanding amount on behalf of the Account holder from any other Account maintained by the Account holder with the Bank.
- The Bank may also refuse to approve a Card Transaction if it for any reason whatsoever, it believes that the Card or Customer's Account is being misused or where the Bank suspects fraudulent use of the Card. As part of fraud prevention procedures, the Bank may contact the Cardholder via phone/ SMS.
- The Bank will not be responsible for the malfunctioning of any ATM Card due to any mechanical defect or any other reason beyond its control.
- The Cardholder acknowledges that the available balance in the Customer's Account may be different from the balance amount as printed on the statement, due to the Card transactions or other holds on the Customer's Account.
- When the Card is used for a transaction in a currency other than Omani Rials, the Bank will convert the amount of the Card transaction at the rate of exchange prevalent at the time/agreed between the parties, into Omani Rials and debit the Customer's Account.
- Cash withdrawals using the Card outside the jurisdiction of the Sultanate of Oman will attract a cash withdrawal fee as determined by the Bank from time to time.
- Cash withdrawals using the Card at ATMs of banks or financial institutions other than the Bank within the jurisdiction of the Sultanate of Oman under Oman Network Switch will attract a cash withdrawal fee as determined by the Bank from time to time.
- The Customer agrees to fully indemnify the Bank and hold the Bank harmless against any and all actions, proceedings, costs, losses or damages (including legal costs) it may suffer incur in connection with the usage of the Card or misuse of the Card, PIN and/or other facilities provided to the Card.
- In the instance that the Customer uses the Card to facilitate a purchase of goods or services that are repugnant to the principles of shari'a, at its sole discretion the Bank may terminate suspend the right of the Customer to use the Card.
Suspension, Closure and Termination
- The Bank can suspend or close the Customer's Account at any time. If the Bank closes the Customer's Account, the Bank will notify the Customer as soon as they
- The Bank will close the Customer's Account after they have received a notice in writing from the Customer and the Bank will pay the Customer any credit balance in their Account after deducting any amounts that the Customer owes the Bank.
- After all the Customer's Accounts are closed, the Agreement is no longer effective except for the Surviving provisions under the Standard Terms, Any rights or obligations which have accrued on or before Account closure are still effective.
- If the Bank processes a Withdrawal after the Customer's Account is closed, the Customer agrees to pay the Bank such amount on demand.
- The Bank will not pay the Customer return on any unclaimed credit balance in a closed or suspended Account or an Account that the Bank have listed as dormant.
- The Bank will inform the Customer when they convert one type of Account into another type of Account.
- The Bank permits the customer to use the Card for the purpose of online transactions subject to clause 8 below.
- If the Customer uses the Card for the purpose of online transactions pursuant to clause 7, it agrees to fully indemnify the Bank and hold the Bank harmless against any and all actions, proceedings, costs, Losses or damages (including legal costs) it may suffer and/or incur in connection with the usage of the Card for such online transactions or misuse of the Card, PIN and/or other facilities provided to the Card flowing from such online transactions.
- If no withdrawal, deposit, fund transfer or use of electronic banking services is made on a savings account (excluding fixed deposit) or current account for six (6) consecutive months or such other period that the Bank notify to the Customer, the Bank will classify the account as dormant.
- If the balance of a dormant account:
- falls below a minimum limit set by the Bank, the Bank may close the Account and the Bank may use any credit balance to pay the dormant account fee as notified by the Bank; or
- is above the minimum limit set out by the Bank, the Bank may debit the dormant account fee as notified by the Bank until the Account is closed.
- Two or more Customers may open an Account jointly, such an account being:
- opened jointly by two or more than two persons in which they have equal rights and equal obligations; and
- an account by which all deposits made in a joint account and the inward transfers to this Account shall be deemed to be owned equally by the Account holders unless otherwise stipulated on the Account Opening Application Form.
- Such persons shall be jointly and severally liable for all liabilities incurred in relation to the Account.
- Persons authorised to operate joint accounts will be entitled to deposit and withdraw:
- convertible currencies;
- payment orders;
- drafts; and/or
- other negotiable instruments
and such authorised persons, will also have the right to draw, endorse and negotiate cheques, transfers or other negotiable instruments in favour of the Bank in their capacity as authorised representatives.
- and such authorised persons, will also have the right to draw, endorse and negotiate cheques, transfers or other negotiable instruments in favour of the Bank in their capacity as authorised representatives.
- In the event of death of one of the joint account holders or the loss of his/her legal capacity:
- the other Account holders should notify the Bank of their intention to continue the joint account, within a period not exceeding ten (10) days from the date of death or the loss of the legal capacity; and
- upon receiving the notice in clause 5, the Bank shall then suspend withdrawal from the joint account until a successor is legally appointed.
- Any of the joint account holders or his/her representatives shall not apply for credit facilities in their personal names to be secured by the joint account without the written approval from all joint account holders.
- The Bank shall have the right to issue the Card to each of the joint account holders if each of them is authorised to handle the Account by a single signature only, and they will be held individually or jointly, responsible for all liabilities that occur from using this service.
- In the event that the Bank receives conflicting instructions from the signatories to the joint account, the Bank shall be entitled to suspend the operation of such Account, without any prior notice.
- The Bank shall have the right to close or freeze the Account at any time at its option for any reason whatsoever.
- The persons authorised to sign, whose names are mentioned in the Account Opening Application Form, shall handle all the banking and investment transactions with the Bank to the extent of the powers granted to them in the memorandum and articles of association or other documents conferring such authority to those authorised persons.
- Owners of an entity that is indebted to the Bank in any way undertake jointly and severally to pay all the Bank's dues, whether from the assets of the entity or from their own funds.
- The entity undertakes to inform the Bank promptly of any changes in its memorandum and articles of associations or its by laws or the changes of the legal form or any changes in its constitution, board of directors, partners or representatives or any changes in the authorised signatories. The Bank will bear no responsibility in the event any of its directors, partners, managers or representatives have violated the provisions of the Company's status as contained in its Articles of Association or its bylaws or have acted violated their powers.
- The entity authorises the Bank to pay and debit the account, whether the account was in credit or any amount marked on hold due to such debits, all transactions issued by those authorised to operate the Account. The entity shall be liable for any instruction or orders issued to the Bank by those authorised to operate the account and enter into aII banking transactions including opening documentary letter of credit, money transfer and all transactions including financing facility etc.
- Such signatories who sign banking transactions shall be personally liable in addition to the company's liability to compensate the Bank in full any debt(s), present or future or any amount incurred or any loss or damage caused to the bank as a result of any unlawful acts done by them.
- The Company undertakes to supply the Bank with an audited balance sheet and income statements or any other document(s) as and when required by the Bank.
- The partners declare that in case of the amendment in the powers of any partner representing the entity, whether due to withdrawal, resignation or dismissal, or to any amendment in the Memorandum of Association or the change of its name or the loss of legal capacity of any partners or the declarations of his/her bankruptcy or death, or joining or withdrawals of one or more partners, the remaining partners shall be fully liable on behalf of the entity, and the Bank shall have the right to attach all the credit amount of the entity in favour of the Bank to recover its dues or in favour of any court order or judgment.
- The relationship between the Bank and the Customer holding a current account shall be based on the principle of Qard (Current Account).
- The opening of the Current Account shall be subject to the minimum balance requirements prescribed by the Central Bank of Oman from time to time, and the minimum balance requirements shall be advised to the Customer.
- The Bank shall not charge any penalty fees for the credit balance of a Current Account falling below the prescribed minimum balance.
- The Current Account may be operated in such denominations approved by the Bank from time to time.
- Deposits in the Current Account shall be accepted in all branches of the Bank in Oman by cash, transfers, cheques drawn on the Bank’s branches or local banks or through the Bank’s ATMs, or by any other mode acceptable to the Bank.
- Withdrawals from the Current Account shall be made using the Card, withdrawal slips, cheques, standing instructions, pay orders or electronic instructions, through the channels made available by the Bank, including but not limited to point of sale, branches, Internet Banking Service, ATMs, Telephone Banking Service or by such other modes or channels as shall be made available by the Bank from time to time.
- The Bank is entitled to invest the credit balance in the Current Account in such a manner that the Bank, in its absolute discretion deems fit, complying with the Shari’a principles. No returns of whatsoever nature (including profit) from such investment shall be shared or paid to the Customer.
- The Customer shall be provided with a cheque book on the opening of the Current Account. The cheque book may be collected by the Customer or its authorized representative from the relevant branch within 90 days from the request for collection, failing which the cheque book shall be destroyed.
- The Bank reserves the right to refuse to supply cheque book(s) or withdraw the cheque book facility without any advance notice and without assigning any reason if, in the Bank's opinion, the Current Account is not being satisfactorily operated or on any other reason whatsoever.
- The Customer shall draw the cheques and write all other instructions relating to the Current Account in Arabic or English languages only. The Bank shall not accept cheques written in any other language.
- The Bank shall honour the value of cheques or other negotiable instruments, drawn on the Current Account provided that sufficient balance is available in the Current Account.
- The Customer must keep the cheque book(s) safe and secure at all times. In the event of loss, destruction or theft of the cheque book, the Customer is to notify the Bank immediately.
- The Customer shall bear full responsibility and liability in respect of the issuance and use of any cheques and shall be responsible in all cases arising out of theft of the cheque book or any of its misuse, including forgery.
- The Customer shall sustain all the consequences of any default and indemnify and hold the Bank harmless in all respects. The Customer will promptly return to the Bank or destroy any unused cheque, payment instruments and related materials when the Current Account is closed.
- The Bank may, without taking any liability, accept from the Customer any stop payment of cheque in case the cheque book is lost and the Customer has, without any delay furnish complete particulars in respect of that cheque to the Bank, including cheque number, date of issue, date of presentment, payee's name and amount and proof satisfactory to the Bank, subject to clauses 15.1 to 13.15.3 as follows:
- stop payment instructions given on telephone shall have to be supported by a written request to be sent within twenty four hours of verbal instructions.
- the Customer must also complete such further documentation as may be required by the Bank in respect of stopping payment on a cheque.
- the Customer will bear any loss, damage and cost (including legal cost) due to these incidents.
- The Bank has the right to close or freeze the Current Account and to cause the Customer’s name to be blacklisted in accordance with the regulations of any applicable credit agency or the Central Bank of Oman or any other regulatory authority in force from time to time.
Savings Account/ Islamic Fixed Deposit Account
- The relationship between the Bank and a Customer holding a savings account and/ or an Islamic fixed deposit account shall be based on the principle of Mudaraba, where the Bank shall be Mudarib and Customers shall be Rab-al-Maal (Savings Account and Islamic Fixed Deposit Account respectively).
- The Customer's funds in the Savings Account/ Islamic Fixed Deposit Account will, together with funds from other depositors/ investors and that of the Bank's, be collected and formed part of a joint investment pool (the Mudaraba Pool).
- The Customer, as the owner of funds (as the Rab al-Mal) authorises the Bank (as the Mudarib) to invest the Customer's funds in the Savings Account/ Islamic Fixed Deposit Account, forming part of the Mudaraba Pool, on an unrestricted basis, in accordance with Shari'a requirements in such manner as the Bank, in its absolute discretion, deems fit (Mudaraba Investment).
- The Customer is entitled to withdraw any amount in the Savings Account at any time subject to the minimum balance amount prescribed by the Bank and/ or the Central Bank of Oman, from time to time.
- If at any time, the Savings Accounts do not meet the minimum balance requirements pursuant to clause 4, the Savings Account shall not be eligible for any form of returns/ profits on the Mudaraba Investment.
- Should the Customer withdraw any amount from the Islamic Fixed Deposit Account prior to its maturity, the customer shall only receive the Mudaraba profit based on the last completed tenor subject to clause 7.
- Should the Customer withdraw any amount from the Islamic Fixed Deposit Account within thirty (30) days of the initial deposit of those monies in the account, the customer shall receive no profits whatsoever.
- The Customer may make withdrawals from the Savings Accounts/ Islamic Fixed Deposit Account by using any of the modes made available by the Bank, including but not limited to using the Card, withdrawal slips, standing instructions, pay orders or electronic instructions, through the channels made available by the Bank, including but not limited to point of sale, branches, ATMs, Internet Banking Service, Telephone Banking Service or by such other modes or channels as shall be made available by the Bank from time to time.
- The Savings Accounts/ Islamic Fixed Deposit Account may be in such denominations as approved by the Bank from time to time.
- The profits from the Mudaraba Investment (Mudaraba Profit) during an investment period (Investment Period) shall be determined and distributed in the manner set out below and further subject to the terms of the Savings Account Mudaraba Contract/ Islamic Fixed Deposit Account Mudaraba Contract:
- the Bank's share of the Mudaraba Profit shall be determined on the basis of a predetermined percentage which shall be determined by the Bank at the beginning of each specified period and available at the Bank's website (Bank Mudaraba Profit); and
- the balance of the Mudaraba Profit after deducting the Bank's Mudaraba Profit shall be distributed among the investors of the Mudaraba Pool on the basis of predetermined weightages based on the features of the accounts, including daily account balances maintained by investors of the Mudaraba Pool, tenure of accounts, maturity, profit payment frequency and such other variables as the Bank deems necessary. The weightages applicable to the Customer shall be determined by the Bank at the beginning of each specific period, and shall not be changed during the relevant period.
- In the event the Bank also provides equity in the form of Musharaka/Mudaraba (or any other appropriate Shari'a concept approved by the Shari'a Supervisory Board, the income will be first distributed between the Bank and Mudaraba deposit holders as per the agreed profit sharing ratio to share the return to the Bank against his equity investment.
- The Customer acknowledges that nothing in this section and the General Terms shall be construed as being a warranty or a representation by the Bank of any guaranteed profits, or any guaranteed repayment of any part or the entire portion, in respect of the Mudaraba Investment, and that for the avoidance of any doubt, in the case of any Loss, the Customer will bear such Loss.
- The Customer acknowledges that specific terms set out in the Savings Account Mudaraba Contract and Islamic Fixed Deposit Mudaraba Contract, as applicable, supplement these Terms and Conditions of Accounts.
- In the event that a conflict arises between the Terms and Conditions of Accounts and the terms set out in the Savings Account Mudaraba Contract and/or Islamic Fixed Deposit Mudaraba Contract, the terms set out in the Savings Account Mudaraba Contract and/or Islamic Fixed Deposit Mudaraba Contract shall prevail.
Foreign Currency Accounts
- The Customer may open accounts in foreign currencies upon the approval of the Bank. Foreign currency Accounts shall be subject to the laws of Oman, including Foreign Exchange Regulations and directives of the Government of Oman, Central Bank of Oman and other concerned authorities and agencies, issued from time to time.
- Cash withdrawal in Foreign Currency notes from foreign currency accounts will be as per Shari'a requirements for foreign currency transactions and subject to rate of exchange and commission determined by the Bank from time to time.
- The Customer understands and agrees that foreign currency transactions may involve foreign exchange risks for which the Bank shall not be responsible.
- Foreign currency Accounts may be opened with the minimum deposit as determined by the Bank from time to time, subject to clauses 4.1 and 15.4.2:
- the Customer will have to maintain at all times such balance in their Account, which is not below the prescribed minimum balance; and
- should the balance in the Customer's foreign currency Account falls below the minimum balance limit prescribed by the bank, for a period of six (6) months, then the Bank may, at their sole discretion, close such Account without any prior notice to the Customer.
- Competent courts in Oman shall have exclusive jurisdiction in respect of any claims brought against the Bank in Oman in relation to foreign currency Accounts.
- Any cash withdrawal(s) in a currency other than Riyal Omani shall be subject to availability of sufficient currency notes and charges with the Bank at the time of withdrawal.
Governing Law and Interpretation
- The Terms and Conditions of Accounts shall be governed by the laws of the Sultanate of Oman.
- In the event that a conflict should arise between the Arabic translation of the Terms and Conditions of Accounts and the English translation, the Arabic translation of the Terms and Conditions of Accounts shall prevail.