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Discontinuation of Corporate Cheques

 

 

Background on the Discontinuation of Corporate Cheques

 

In line with the Monetary Authority of Singapore’s (MAS) and the Association of Banks in Singapore’s (ABS) nationwide initiative to modernise payment systems, the use of Singapore dollar‑denominated corporate cheques will be progressively discontinued.

 

 

 

With effect from 1 January 2026, banks will no longer issue new corporate cheque books, and from 1 January 2027, banks will cease the processing of all corporate cheques. This change is driven by the significant decline in cheque usage over the years, rising operational and processing costs, and the widespread availability of faster, safer and more efficient electronic payment alternatives such as PayNow and Direct Credit. The transition supports Singapore’s move towards a digital payments ecosystem and aims to provide customers with more reliable and timely payment experiences.

This change helps reduce delays, lost cheques and processing costs, while allowing payments to be made and received more quickly and conveniently. We encourage customers to update their payment details early to ensure a smooth and uninterrupted payment experience.

 

 

Source quoted from joint media release MAS/ABS:

mas-and-abs-announce-launch-of-electronic-deferred-payment-solutions-in-mid--2025-and-extension-of-deadline-for-cessation-of-corporate-cheques.pdf

 

 

Frequently Asked Questions

  1. What does the discontinuation of corporate cheques mean?

It means that insurers and other organisations will no longer accept cheque payments and will instead rely on electronic or other non-cheque payment methods.

 

2. Why are cheque payments being discontinued?

 

Cheque payments are:

 

·       Less efficient to process

·       Subject to longer clearing times

·       Associated with higher operational and fraud risks

The transition supports more timely, secure, and reliable payment processing.

 

 

3. Who may be affected?

 

Policyholders may be affected if they:

 

·       Pay insurance premiums by cheque

·       Receive payouts, refunds, or other disbursements by cheque

 

 

  1. What alternative payment methods may be available?

Depending on the insurer, alternative payment methods may include:

  • GIRO (direct debit arrangements)
  • PayNow
  • Electronic Deferred Payment (EDP) and EDP+
  • Electronic bank transfers (e.g. FAST)

Policyholders should refer to their insurer for the payment options applicable to their policy.

 

  1. Does the cessation of cheque payments terminate my insurance policy?

No. The cessation of cheque payments does not automatically terminate an insurance policy. Policies remain in force subject to compliance with their terms and conditions, including timely payment of premiums using accepted payment methods.

 

  1. What should I do if I currently pay my insurance premiums by cheque?

Policyholders should:

  1. Contact their insurer or appointed financial representative adviser
  2. Select an alternative payment method offered by the insurer that is most appropriate to you
  3. Complete any required authorisation form or setup procedures as required
  4. Ensure that the new payment arrangement is in place before the next premium due date

 

 

  1. What happens if premium payments are not successfully made?

If premiums are not paid in accordance with policy terms:

  • Late payment consequences may apply
  • Policies may lapse after the applicable grace period
  • Coverage may be affected

Policyholders should refer to their policy documents for details.

 

  1. How will insurance payouts, refunds, or reimbursements be made?

Payouts and refunds will generally be made through non-cheque electronic means, such as direct crediting to a bank account or PayNow. Hence, it is important that you contact your insurer to ensure the alternative payment to replace your cheque payment mode is updated.

 

  1. Are policyholders required to use GIRO for insurance payments?

No. While GIRO is commonly offered due to its reliability, insurers may provide other payment options. Availability may vary by insurer and policy type.

 

  1. Are electronic payment methods secure?

Electronic payment systems used in Singapore are subject to regulatory oversight and incorporate security controls to safeguard transactions.

 

Key Takeaways

 

  • Cheque payments are being phased out and will no longer be viable
  • Action is required to avoid payment disruptions
  • Insurance coverage remains intact only if premiums continue to be paid on time
  • Help and support are available for those who need assistance

 

 

Assistance and Support

 

Policyholders who require assistance in transitioning to alternative payment methods, including elderly or less digitally familiar individuals, may seek support from:

 

·       Their appointed financial adviser representative

·       Their Insurers’ customer service centres via call or email.

 

 

 

 

More information and details for reference

Sources quoted from ABS:

https://abs.org.sg/e-payments/guide-to-e-payments#:~:text=Discontinuation%20of%20SGD%20corporate%20cheques,stop%20processing%20SGD%20corporate%20cheques

https://abs.org.sg/docs/library/abs-faqs-for-sunsetting-corporate-cheques.pdf