The Monetary Authority of Singapore ( MAS ) and the Association of Banks in Singapore( ABS ) first announced the decision to charge customers — both corporates and individuals — for issuing Singdollar-denominated checks in July.
Some banks now impose fees for the issuing of corporate checks but not for individual checks.
According to MAS and ABS, the change coincides with rising check-processing costs as use declines.
Since 2016, the average opening fee for a check has quadrupled, reaching South$ 0.40 in 2021. If check volumes drop by another 70 % by 2025, this is expected to rise to between S$ 2 and S$ 6.
The majority of lenders have been subsidizing the cost of check control, but given the anticipated raise, they are no longer able to do so, according to MAS and ABS.
As a result, seven lenders will be able to adopt the new fees as soon as possible, and other banks won’t do so until next July.
Those who deposit checks will also be required to pay a price in the future in addition to those who issue them.
With the exception of UOB and Maybank, which announced that check deposits would remain free for at & nbsp at least six months after November 1st, most banks have not yet disclosed information regarding deposit fees. This is because” various government agencies and organizations gradually adopt alternative payment methods, such as PayNow.”
Should there be shifts, customers will be notified, according to both banks.