MAS Announces end-2025 Timeline to Eliminate Corporate Cheques
Charges for individual and corporate cheques set to increase by 1 November 2023
Singapore, 28 July 2023... The Monetary Authority of Singapore (MAS) today announced that all corporate cheques will be eliminated by end-2025 while individuals will still be able to use cheques for a period after 2025. With cheque usage in Singapore falling steadily, the cost of processing each cheque has been rising
2 MAS is working closely with The Association of Banks in Singapore (ABS), the financial industry and government agencies on a series of initiatives aimed at transiting cheque users to e-payment solutions. This will include a specific e-payment solution that can serve as an alternative for post-dated cheques. This will provide greater convenience to corporates and individuals.
3 Annual cheque transaction volume has declined by almost 70% from 61 million in 2016 to less than 19 million in 2022, alongside growing adoption of e-payments by both corporates and individuals
4 In a , MAS and the Payments Council (704 KB)
(i) ABS will work with the Domestic Systematically Important Banks (D-SIBs)
(ii) Banks will cease the issuance of new cheque books to all corporates in 2025, after the launch of the EDP solution.
(iii) The D-SIBs in Singapore will commence charges for SGD-denominated cheques issued by both corporates and individuals by 1 November 2023, while other banks will do so by 1 July 2024. Charges for SGD-denominated cheques deposited by corporates and individuals will be implemented in phases
5 Further details on the initiatives are set out in the response to the public consultation, which may be viewed at this . (571 KB)
6 To ensure that Singapore’s e-payment journey is inclusive, individual cheque users will still be able to use cheques for a period beyond 2025. This will provide the remaining individual users with a longer runway to switch to alternative payment methods. In the meantime, banks will be reaching out to customers who have yet to convert to digital payments to allay their concerns.
7 MAS will further study the use of cheques by individuals, and develop appropriate initiatives to assist remaining individual cheque users in their transition to alternative payment methods such as PayNow, FAST, GIRO, and MEPS+. MAS will conduct a second public consultation next year to set out the initiatives and timeline to eliminate individual cheques and terminate the CTS.
8 MAS and ABS encourage all cheque users to switch to other payment methods as the industry prepares to retire the CTS. This is in line with Singapore's Smart Nation vision where everyone has access to fast, simple, and secure payments.
About the Monetary Authority of Singapore
The Monetary Authority of Singapore (MAS) is Singapore’s central bank and integrated financial regulator. As a central bank, MAS promotes sustained, non-inflationary economic growth through the conduct of monetary policy and close macroeconomic surveillance and analysis. It manages Singapore’s exchange rate, official foreign reserves, and liquidity in the banking sector. As an integrated financial supervisor, MAS fosters a sound financial services sector through its prudential oversight of all financial institutions in Singapore – banks, insurers, capital market intermediaries, financial advisors and financial market infrastructures. It is also responsible for well-functioning financial markets, sound conduct, and investor education. MAS also works with the financial industry to promote Singapore as a dynamic international financial centre. It facilitates the development of infrastructure, adoption of technology, and upgrading of skills in the financial industry.
About The Association of Banks in Singapore
The Association of Banks in Singapore (ABS) plays an active role in promoting and representing the interests of the banking community in Singapore. In doing so, ABS works closely with the relevant government authorities towards the development of a sound financial system in Singapore. Since its establishment in 1973, ABS has promoted common understanding among its members and projected a unifying voice on banking issues. It has brought its members closer together through various guidelines and banking practices as well as the support of projects of mutual benefit to face the challenges of the financial and banking community in Singapore. Today, ABS has a membership of more than 150 local and foreign banks.