Taking an overdraft from banks will no longer be a privilege available exclusively to major corporate clients, as the individual customers can also obtain overdraft from banks, the Oman Observer said.
According to a recent instruction given by the Central Bank of Oman to various banks, individual account holders of banks can be given an overdraft facility, said the daily.
However, for individual customers there is an overdraft limit of three months' salary. In the case of companies, the overdraft limit is determined by creditworthiness.
In the case of individuals, banks are free to give maximum overdraft of two months salary. Earlier, only companies were allowed to take bank overdraft.
The decision will help to reduce inconvenience and embarrassment when some companies delay an employee's salary, the paper added.
According to bankers, the new overdraft facility given to individual customers will partially solve the problem of cheque bouncing and other forms of defaults by individual customers due to short-term liquidity problems – Albawaba.com
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