The deadline by which banks must stop processing corporate checks has been extended until the end of 2026

NEW ELECTRONIC METHODS OF INSTALLMENT PAYMENT

ABS together with seven domestic systemically important banks (D-SIBs) will launch two new electronic payment methods EDP and EDP+ in mid-2025.

D-SIBs: Citibank, DBS Bank, HSBC, Maybank, OCBC Singapore, Standard Chartered Bank and UOB.

EDP ​​and EDP+ are designed to “address late payment use cases and transactions that require greater certainty of payment respectively,” MAS and ABS said.

They added that the main difference between PERP and PERP+ is when funds are debited from the payer’s account. For EDP, funds are debited upon presentation of payment by the payee, while for EDP+, funds are debited immediately upon issuance.

Both will use PayNow to allow payers to identify payees when making payments, and will be accessible through digital banking platforms.

Both modes will also be valid for six months from the effective date, similar to checks and cashier’s orders, which are checks issued by the banks themselves.

The two electronic payment methods will offer advanced features including digital alerts for both the payer and the payee at various stages of the transaction – issuance, presentation, expiration and cancellation.

WITHDRAWAL OF THE USE OF CHECKS

In November 2022, MAS published a consultation paper proposing a road map to end the use of checks here in Singapore.

This comes amid a decline in the use of checks by both corporates and individuals in Singapore in favor of electronic payment solutions.

The annual volume of check transactions has fallen by about 80 percent from 61 million in 2016 to less than 14 million in 2023, MAS and ABS said.

The share of Sindollar-denominated check transactions in Fast and Secure Transfer (“FAST”), interbank GIRO and checks has declined from 32 percent in 2016 to less than 4 percent in 2023.

MAS and ABS added that retail checks will remain available, as well as cashier’s orders and US dollar checks for both corporate and retail customers.

Major retail banks in Singapore will also continue to waive check service fees for senior citizens.

Interested parties are invited send your feedback by January 17, 2025 in a document for public consultations with a detailed description of the plan for the transition from checks to electronic payments.