(5 December 2024 – Singapore) The Monetary Authority of Singapore (MAS) has extended the deadline for the elimination of corporate cheque payments by a year, providing businesses with additional time to adapt to existing and upcoming e-payment alternatives.
Previously, MAS announced plans to phase out corporate cheques, with banks ceasing to issue new corporate cheque books by 2025. Under the revised schedule, banks will stop issuing new cheque books to corporates by 31 December 2025, while the deadline for processing corporate cheques has been extended to 31 December 2026.
The shift comes amid a significant decline in cheque usage in Singapore. Between 2016 and 2023, SGD cheque transaction volumes dropped by approximately 80 percent, falling from 61 million transactions to fewer than 14 million. Cheques’ share of overall payments involving Fast and Secure Transfers (FAST), Inter-bank GIRO, and cheques has also declined sharply, from 32 percent in 2016 to under 4 percent in 2023.
As part of this transition, MAS plans to replace the current Cheque Truncation System with a cloud-based system to serve remaining cheque users. These include those who rely on SGD retail cheques, USD cheques, and cashier’s orders.
To further support the migration to e-payments, the Association of Banks in Singapore (ABS) is preparing to launch new Electronic Deferred Payment (EDP) tools in mid-2025. These solutions, named EDP and EDP+, are designed to address specific use cases: EDP will cater to post-dated payments, while EDP+ will provide greater certainty for transactions requiring secure payment guarantees. Both tools will integrate with digital banking platforms and utilise PayNow infrastructure to facilitate seamless payer-payee identification.
For individual cheque users, MAS has clarified that paper cheques will remain an option beyond 2025. This extended timeline is intended to provide additional support for retail users facing challenges in transitioning to digital payment methods.
The MAS says it aims to facilitate a smooth transition for businesses and individuals as Singapore moves toward greater adoption of e-payment systems, reinforcing its position as a leader in digital payments innovation.