Singapore 17 September 2002 - The Monetary Authority of Singapore (MAS) today issued the Bills of Exchange (Cheque Truncation) Regulations 2002, which will come into operation on 20 September 2002. The regulations define what comprises an Image Return Document (IRD), which is a document that banks will issue instead of returning the original cheque when a cheque is dishonoured, and the electronic payment information of a cheque, as referred to under the Bills of Exchange (Amendment) Act.

2   The Bills of Exchange (Amendment) Act 2002, which was passed by Parliament on 23 July 2002, will also commence on 20 September 2002. The Act amends the Bills of Exchange Act for the purpose of establishing a Cheque Truncation System (CTS). Specifically, the amendments allow for cheque presentment by electronic means and recognise the rights of a holder of an IRD. The amendments also allow MAS to make regulations relating to cheque truncation with the approval of the Minister.

3   The regulations were a result of inputs from the banks and the Singapore Automated Clearing House, who is the operator of the CTS. More information on CTS and IRD can be found on the ABS website at http://www.abs.org.sg .

4   Copies of the Bills of Exchange (Amendment) Act 2002 and the Bills of Exchange (Cheque Truncation) Regulations 2002 can be obtained from the eGazette website at http://www.egazette.com.sg . The regulations can also be obtained from the MAS website at http://www.mas.gov.sg under Statutes, Regulations & Notices.

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