MAS to eliminate corporate cheques end of 2025
Last updated on 31 August 2023
The Monetary Authority of Singapore (MAS) recently announced that by the end of 2025, all corporate cheques will be eliminated. To that end, all banks will cease to issue new corporate chequebooks in 2025. Amidst the falling usage of cheques and the rising cost of processing cheque payments, banks will begin charging for all Singapore dollar-denominated cheques from 1 November 2023.
MAS encourages businesses to embrace digital payment systems such as NETS, PayNow and GIRO. The Association of Banks (ABS) is also currently working with Singapore banks to build an electronic deferred payment solution to eliminate the need for cheques. The new system is expected to come online by 2025 to transition to zero corporate cheques.
Companies that still rely on using corporate cheques extensively should transition to using electronic payment methods. Cloud accounting platforms from service providers offering accounting services in Singapore can help companies integrate their payment processes with electronic payment solutions. Invoices can now also incorporate QR Codes for easy customer payment and avoid the need for cheque payments.
If you are unsure how the impending cessation of corporate cheques affects you, contact us today for a consultation and find out how we can assist you in the transition.