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 recently at the Channels 2005 event in Dubai.
HP was appointed ahead of international competition to install the state-of-the-art RTGS solution of CMA Small Systems of Sweden that is expected to cultivate sweeping changes in the Sultanate's banking industry.
The completion of phase one reflects a successful partnership following the contract signing in Q4 2004 by Hamood Sangour Al Zadjali - Executive President of Central Bank of Oman, Amr Salem - General Manager, Gulf and Eastern Mediterranean, HP, and Sayyid Tarik bin Shabib Al Said, Director of Renaissance services SAOG on behalf of Imtac, an HP partner in Oman.
Revealing details of the project, Al Zadjali explained that The Central Bank of Oman was 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 with Central Bank of Oman (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 stated. 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 high availability HP _PA-RISC system and an HP Storage Works platform. HP’s Divesh Loomba, Territory Account Manager, Oman said: "The introduction of this system catapults CBO into a select group of central banks in the Middle East which 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.
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 added.
Sayyid Tarik bin Shabib Al Said elaborated on winning the contract: “We were awarded the contract against stiff competition because of HP's strengths and proven track record, both in Oman and in the rest of the world. Imtac has been an HP partner in Oman for almost two decades and this contract not only strengthens Imtac’s association with HP but creates a platform for the two organisations to address other large projects in the region."
CBO has confirmed that plans have been implemented that 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," emphasised Al Zadjali.
Speaking at the Channels 2005 event, Dania Mchaourab, Project Manager, Technology Solutions Group – HP Middle East said: “HP is delighted that Mr. Jamal Al Raisi, Manager – Payment Department, Central Bank of Oman is participating in the HP workshop at Channels 2005. Mr. Al Raisi will be sharing his experience with HP in managing IT projects and, in particular, managing the current implementation of the RTGS project. . We hope that this industry platform highlights the breadth of HP’s solutions and services offerings for the Financial Services Industry.”
