Case Study-3

Electronic - Transfer system for salary payments launched in Sultanate of Oman

Salaries will now be credited to companies using e-banking channels, after the required services were completed by the Ministry of Finance and Central Bank of Oman.

The systems enabling companies to credit salaries through e-banking services were put in place last March, with the aim to pay salaries to employees at a faster pace.

The move to credit salaries by e-transfers will also have other benefits, including providing updated personnel data in all government units in harmony with CBO standards, and maintaining the confidentiality of data and information by encryption of payroll files.

It is also designed to halt the use of payment methods such as Cheques to provide salaries to employees.

Efforts by the Ministry of Finance to set-up e-transfer methods are also part of its plans to soon set up an automated clearing house, which will enable the CBO to directly transfer salaries into the accounts of employees.

As part of its roll-out of the e-transfer system, the Ministry of Finance has also asked other organisations in the country to not provide advance salaries to employees going on annual leave.

In light of activating the electronic salary transfer system, the Ministry of Finance has instructed all ministries and government units to halt paying the salary in advance for annual leave, said the MoF in a circular.

The system aims at accelerating and facilitating the transactions of salaries and other entitlements, as well as enhancing internal controls.

Questions:

1. Elaborately go through the case andwrite down the valid 05 points which has been discussed above the case study.

2. What is E-Transfer system, how its benefited to the organisation and employees? (Mention 5 benefits points from organisation and employees)

3. What are the various drawbacks of E- transfer system and how to overcome the problems?