- Banks will stop issuing new corporate cheque books by December 31, 2025, and cease processing cheques by December 31, 2026, allowing more time for businesses to adopt digital payments.
- MAS plans to roll out cloud-based cheque systems and Electronic Deferred Payment (EDP) tools in 2025 to support smoother transitions to e-payments for both corporates and individuals.
What happened: Singapore to phase out corporate paper cheques
The Monetary Authority of Singapore (MAS) has extended the deadline for phasing out corporate paper cheques. Banks will stop issuing new corporate cheque books by December 31, 2025, but the deadline to cease processing corporate cheques has been pushed to December 31, 2026. This extension aims to give businesses more time to transition to digital payment methods, as cheque usage has been declining. Corporate cheque volumes fell by 80% from 61 million in 2016 to under 14 million in 2023.
Alongside this, MAS plans to replace the Cheque Truncation System with a cloud-based solution. New electronic payment tools, including Electronic Deferred Payment (EDP) and EDP+, will be introduced by mid-2025 to support post-dated and high-certainty payments. These tools will integrate with PayNow for seamless payments. While Singapore phases out corporate cheques, it will continue to offer retail cheques for a period to help individuals transition to e-payments.
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Why it is important
The extension of the deadline for phasing out corporate cheques in Singapore is a significant step in the country’s ongoing push toward a fully digital and cashless economy. This move allows businesses more time to adapt to electronic payment systems, ensuring a smoother transition without disrupting operations. The decline in cheque usage, with volumes dropping by 80% since 2016, reflects the growing preference for faster, more efficient e-payment methods like Fast and Secure Transfers (FAST) and Inter-bank Giro.
This transition is crucial for enhancing payment efficiency, reducing administrative costs, and supporting the government’s goal of driving innovation and digital transformation within the financial sector. The new cloud-based Cheque Truncation System will help streamline cheque processing for remaining users, while the introduction of Electronic Deferred Payment (EDP) and EDP+ tools will address evolving payment needs. These tools will improve certainty and convenience, particularly for post-dated payments. Overall, this initiative supports the modernization of the financial ecosystem, ensuring that businesses and individuals remain competitive in a digital-first economy.
