Corporate cheques will continue to be processed until the end of 2026
By the end of 2026, corporate cheques will no longer be available in Singapore as the Monetary Authority of Singapore and the Association of Banks Singapore will be introducing two new e-payment solutions to replace retail and corporate cheque payments.
Additionally, banks will stop issuing new chequebooks by 31 December 2025 and only cease processing cheques by 31 December 2026. These dates apply only to corporate cheques, while retail cheques, cashier’s orders, and US dollar cheques are still available.
In July 2023, MAS announced it would phase out all corporate cheques by the end of 2025, while individuals will still be allowed to use cheques for some time beyond 2025.
Furthermore, major retail banks in Singapore will continue to waive cheque service fees for senior citizens.
Gradually, the two new e-payment solutions set to launch in mid-2025 will work together to address use cases involving post-dated payments and transactions that require greater payment certainty.
How the Payment Solutions Work
The e-payment solutions are called Electronic Deferred Payment (EDP) and EDP+ and are accessible through digital banking platforms. These solutions leverage PayNow to help payers identify payees quickly. Both EDP and EDP+ transactions operate using GIRO as the underlying payment system and remain valid for six months from the effective date, similar to cheques and cashier’s orders.
The differences between the two are as follows:
- For EDP, funds are deducted only when the payee presents the payment.
- For EDP+, funds are deducted immediately at the time of issuance.
These payment solutions will complement current e-payment solutions in Singapore.
Recently, MAS released a public consultation paper outlining plans to phase out corporate cheques and transition retail cheques. The paper proposes replacing the current cheque truncation system with a cost-efficient cloud-based system to support Singdollar retail cheques, US dollar cheques, and cashier’s orders in the medium term.
MAS highlighted the need for this redesign as cheque volumes continue to decline, with more users adopting digital payments. Cheque volumes are projected to drop to under nine million in 2024, compared to 13.8 million in 2023, while the interbank clearing cost per cheque has risen from S$0.10 in 2016 to S$1 in 2024.
