MAS - Monetary Authority of Singapore
MAS - Monetary Authority of Singapore
07/05/2024 | Press release | Distributed by Public on 07/04/2024 22:34
Response to Letter “一张支票收费15元合理吗?” - Lianhe Zaobao, 25 June 2024
We refer to the letter by Mr Huang Jing Ming ("一张支票收费15元合理吗?", 25 Jun). Mr Huang raised concerns over fees charged by banks for withdrawals made in the form of a cheque.
2 With cheque usage falling steadily, the cost of processing cheques has been rising. To recover these cheque processing costs, all banks in Singapore have commenced charging a small fee for Singapore dollar-denominated cheques progressively from 1 November 2023. Nonetheless, all major banks currently waive cheque charges for seniors above 60.
3 We separately understand that in the incident mentioned by Mr Huang, a cashier's order was likely issued rather than a cheque. A cashier's order, also known as a banker's cheque, is an alternative payment instrument typically used for large transactions such as property and vehicle purchases, where certainty of payment is critical. Issuing cashier's orders involves additional processing compared to regular cheques that a customer issues himself and banks typically charge a higher fee (currently $3 - $15 depending on mode of application) to cover these costs. Banks may similarly waive the fees in certain cases, such as the first cashier's order payable to the account holder's own name, as well as upon request from the lower-income elderly.
4 MAS has also reached out to Mr Huang directly for more information and shared his feedback with the bank.
Lu Xinyi
Director (Corporate Communications)
Monetary Authority of Singapore
2 With cheque usage falling steadily, the cost of processing cheques has been rising. To recover these cheque processing costs, all banks in Singapore have commenced charging a small fee for Singapore dollar-denominated cheques progressively from 1 November 2023. Nonetheless, all major banks currently waive cheque charges for seniors above 60.
3 We separately understand that in the incident mentioned by Mr Huang, a cashier's order was likely issued rather than a cheque. A cashier's order, also known as a banker's cheque, is an alternative payment instrument typically used for large transactions such as property and vehicle purchases, where certainty of payment is critical. Issuing cashier's orders involves additional processing compared to regular cheques that a customer issues himself and banks typically charge a higher fee (currently $3 - $15 depending on mode of application) to cover these costs. Banks may similarly waive the fees in certain cases, such as the first cashier's order payable to the account holder's own name, as well as upon request from the lower-income elderly.
4 MAS has also reached out to Mr Huang directly for more information and shared his feedback with the bank.
Lu Xinyi
Director (Corporate Communications)
Monetary Authority of Singapore