Corporate cheque users are advised to present their cheques for clearing well before the deadline to ensure they are processed in time. Credit: Teo Boon Keng Alvin/ Shutterstock.

The Monetary Authority of Singapore (MAS) and the Association of Banks in Singapore (ABS) have announced the launch of two new e-payment solutions slated for mid-2025. 

This is aimed at facilitating the transition from traditional cheque payments to electronic payments for both corporate and retail users.  

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Besides, MAS has extended the deadline to stop processing of corporate cheques by one year to end-2026. 

The forthcoming EDP and EDP+ solutions are being launched in partnership with Domestic Systemically Important Banks (D-SIBs).  

These solutions are accessible via digital banking platforms, will incorporate PayNow to streamline the identification of payees.  

The primary distinction between EDP and EDP+ is the timing of fund deductions from the payer’s account; EDP defers the deduction until the payee initiates the payment request, whereas EDP+ deducts funds immediately upon issuance, reported The Straits Times. 

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While the issuance of new corporate cheque books will halt by 31 December 2025, the processing of corporate cheques will continue until 31 December 2026.  

Corporate cheque users are advised to present their cheques for clearing well before the deadline to ensure they are processed in time. 

MAS has also opened a public consultation to gather feedback with a deadline for submissions set for 17 January 2025.  

However, retail cheques will remain available, alongside cashier’s orders and USD cheques for both corporate and retail customers.  

This initiative to eliminate cheque books and embrace digital payments is part of Singapore’s broader strategy to modernise its payment systems and support the Smart Nation vision, reported The Straits Times. 

OCBC cash product management head Ms Cassie Ng said: “Over the years, we have seen significant reduction in our business banking customers’ usage of cheques. 

“We have observed that businesses are increasingly transitioning to alternative e-payment methods, such as PayNow, which we have made as convenient to use and as cost-effective as possible.”