1. As part of its Smart Nation Vision, Singapore aims to transition into an innovative e-payments society where everyone has easy access to swift, simple and secure payments. To facilitate this transition, the Monetary Authority of Singapore (“MAS”) consulted[1] financial institutions, members of industry associations, government agencies and members of the public on proposed initiatives to:
  • eliminate centrally cleared cheques issued by corporates (“corporate cheques”) by 2025; and
  • assist and encourage remaining users of centrally cleared cheques (including individuals) that are able to switch to alternative payment methods to do so.


2. The consultation began on 2 November 2022, and closed on 13 December 2022.

3.  On 28 July 2023, MAS published its response[2] to the consultation in which it evaluated the feedback obtained from respondents and explained how it would incorporate suggestions into its roadmap to terminate the SGD Cheque Truncation System (“CTS”). The more pertinent portions of MAS’ response are summarised below.

Barriers in switching to non-cheque alternative payment methods

4. Property and legal sectors

  • Respondents noted that cheques are commonly used in property-related transactions. For example, cheques are often used for the payment of stamp duties to the Inland Revenue Authority of Singapore, and flat purchases from the Housing Development Board. To this end, MAS highlighted that the Electronic Deferred Payment (“EDP”) solution, which will be launched by 2025, can serve as a cheque alternative for property transactions. More information on the EDP solution can be in Annex B of MAS’ response[3]. The Singapore Land Authority is also developing a Digital Conveyancing Portal (“DCP”) that seeks to digitalise the existing manual and paper-based conveyancing process, thereby eliminating cheques from the process as well. The DCP is targeted for full commissioning in 2026.
  • As for the legal sector, respondents noted that while the Legal Profession (Solicitors’ Accounts) Rules has been amended to allow for the use of e-payments in respect of payment of monies out of client accounts, the requirement for such e-payments to be made with the authorisation of two solicitors using biometric authentication made it operationally and technically difficult. In response, MAS highlighted that the Law Society of Singapore has completed its review of the challenges relating to the use of e-payments for the payment of monies out of client accounts and has published a revised Practice Direction 3.3.11 for its members. The revised Practice Direction 3.3.11, which came into operation on 23 May 2023, clarifies the technical requirements for digital payments from client accounts.

Initiatives to eliminate corporate cheques and encourage cheque users to switch to alternative payment methods

5. Charges to be imposed for cheque usage

  • All Domestic Systematically Important Banks (D-SIBs)[4] in Singapore will impose charges on SGD-denominated cheques by 1 November 2023, while the rest of the banks will do so by 1 July 2024. This will encourage payment users to switch to cheaper and more convenient alternative payment methods, where available. The financial industry will not adopt a baseline rate to be charged in view of anti-competition rules.
  • There are also plans to implement charges for USD-denominated cheques for both corporate and retail users. Timelines for this and related initiatives will be set out in MAS’ second public consultation.

6. Public communication and support

MAS will work with the Association of Banks in Singapore and other government and industry stakeholders to raise public awareness of the elimination of corporate cheques by 2025. Together, they will address concerns and provide support for those that may face challenges in their transition to alternative payment methods.


[1]p011_consultation-paper-on-roadmap-to-terminate-the-sgd-cts—eliminating-corporate-cheques-by-2025.pdf (

[2] response-to-consultation—roadmap-to-eliminate-corporate-cheques.pdf (

[3] response-to-consultation—roadmap-to-eliminate-corporate-cheques.pdf (

[4] These banks are Citibank, DBS Bank, HSBC, Maybank, OCBC, Standard Chartered Bank and UOB.


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