ABS launches electronic deferred payment solutions as MAS responds to feedback on proposed sunsetting of corporate cheques and retail cheque transition plan
28 August 2025
On 31 July 2025, the Monetary Authority of Singapore (“MAS”) published its response to feedback received on its public consultation on the roadmap to sunset corporate cheques and the transition plan for retail cheques (“Response Paper”).
Earlier on 28 July 2025, the Association of Banks in Singapore (“ABS”) announced the launch of two new electronic deferred payment (“EDP”) solutions, EDP and EDP+, to support the transition to e-payments for cheque users.
EDP and EDP+ are accessible via the banks’ digital banking platforms and offer both individuals and companies a convenient way to make deferred payments and indicate an intent to pay, without the need for a physical cheque. For EDP, funds are deducted from the payer’s account only when payee requests payment. For EDP+, funds are deducted immediately from the payer’s account upon issuance of the EDP+, ensuring the amount cannot be used for other transactions. This reduces the risk of non-payment due to insufficient funds in the payer’s account, providing greater assurance to payees as compared to EDP.
Corporate cheque users should note that from 1 January 2026, all banks will stop issuing new SGD corporate cheque books and from 1 January 2027, all banks will stop processing SGD corporate cheques. Corporate cheque payees should present their cheques for clearing well before 1 January 2027 to ensure that their cheques can be processed before the deadline.
Background
On 5 December 2024, MAS consulted on proposed initiatives to (i) manage the timeline for phasing out SGD corporate cheques and launch of the EDP solution for post-dated payments; and (ii) sunset the current Cheque Truncation System (“CTS”) and replace it with a cost-efficient cloud-based system (“CTS Lite”) to serve the needs of remaining cheque users. These include users of SGD retail cheques, USD corporate and retail cheques, and cashier’s orders. The consultation closed on 17 January 2025. More details on the consultation is set out in our article “MAS consults on roadmap to sunset corporate cheques and transition plan for retail cheques”.
Overall feedback
MAS, in collaboration with the Sunsetting Cheques Workgroup of the Association of Banks in Singapore and the Retail Cheques Workstream of the Payments Council, has incorporated relevant suggestions received into the roadmap to sunset corporate cheques and the transition plan for retail cheques. Respondents were generally supportive of (i) the proposed phase-out of SGD corporate cheque processing by end-2026 while maintaining the availability of SGD retail cheques, USD corporate and retail cheques, and cashier’s orders beyond 2026; and (ii) the introduction of EDP and EDP+ as new e-payment solutions for use cases that currently rely on post-dated cheques and cashier’s orders respectively.
Corporate cheques
Communications and public education to ease transition away from corporate cheques
MAS will support the banking industry in launching a comprehensive public communication campaign to convey key transition deadlines, build awareness of available payment alternatives, and assure the public that USD retail cheques, USD corporate and retail cheques, and cashier’s orders will remain available. Banks will target outreach efforts at sectors or user groups that may be more reliant on cheques. Taking a multi-channel, multi-language communication approach, MAS will deploy a mix of traditional media, digital platforms, and on-the-ground engagement channels.
EDP design, functions, and use cases
As an enhancement to the current cheque user experience, the EDP and EDP+ solutions will have design features that facilitate seamless adoption across the use cases listed by respondents. Payers will be able to search for payees on EDP via either PayNow proxy details (mobile number, NRIC/FIN, UEN) or bank account details, making recipient identification convenient. Banks will send notifications to both payers and payees at key transaction stages, including issuance, presentment, expiration, and cancellation, ensuring transparency throughout the payment process. For EDP transactions, either the payer or payee will be able to cancel the payment before presentment. For an EDP+ transaction, funds will be debited immediately upon issuance, similar to cashier’s orders. EDP and EDP+ transactions are processed via the GIRO infrastructure and subject to GIRO’s existing transaction limits.
Participation in EDP and EDP+ is not limited to the seven Domestic Systemically Important Banks (“D-SIBs”) in Singapore. All banks that are GIRO participants are eligible to participate in these solutions. While the initial launch in July 2025 involved the D-SIBs, the Response Paper reports that ABS has been engaging other interested financial institutions since April 2025 to expand access to EDP and EDP+.
Most participating banks have committed to waiving EDP and EDP+ issuance fees for both retail and corporate customers at launch.
Legal treatment of EDP and alternative legal solutions
MAS acknowledges that an EDP or EDP+ transaction, like any other e-payment in Singapore, does not in itself create any contractual rights or relationship between the payer and payee. The Response Paper explains that for failed or cancelled EDP transactions, legal recourse for payees will be based on the underlying commercial agreements, governed by contract law.
As with other e-payment modes, banks will not be liable for disputes between payers and payees arising from EDP and EDP+ transactions. Users can point to clear transaction records and notifications received at various stages of the EDP or EDP+ transaction lifecycle, which can serve as supporting documentation for civil proceedings.
Users requiring a greater level of payment assurance may opt to use EDP+ or cashier’s orders, with funds debited immediately upon issuance. The Response Paper clarifies that EDP+ is not a digital equivalent of a cashier’s order. MAS will monitor the use of EDP and EDP+ post-implementation and consider user feedback on dispute resolution in determining whether further legal measures are needed to support e-payment solutions.
Retail cheques
Replacing current CTS with a new fit-for-purpose, low-cost system
MAS and ABS will provide participating banks with clear technical implementation specifications for CTS Lite. Industry workshops have been convened to finalise system specifications and implementation requirements for CTS Lite. Several major retail banks have confirmed their participation in CTS Lite.
Participating banks will clearly communicate changes to the cheque user experience under CTS Lite to their customers well in advance of implementation. This communication will include details about the new cut-off time for cheque deposits and the additional day required for funds availability.
Inclusive payments for retail users
MAS notes that businesses have access to various e-payment methods to meet different needs. While PayNow-FAST transactions are capped at S$200,000 per transaction to mitigate fraud and scam risk, corporate users can utilise PayNow Corporate for higher-value transactions. This dual-track approach offers flexibility while maintaining risk controls, with banks providing guidance to help businesses select the most suitable e-payment methods for their specific needs.
Within the maximum limits set for each payment infrastructure, banks may implement additional safeguards through lower daily per-transaction payment limits. MAS encourages bank customers, including those who wish to transfer amounts exceeding their existing transaction limits, to approach their banks to discuss appropriate payment solutions or arrangements that best meet their specific needs.
USD cheques
MAS recognises the need for more cost-effective alternatives to USD cheques. For the time being, USD cheques will remain available to both individuals and corporates after the cessation of SGD corporate cheque processing.
MAS will work with the banking industry to engage USD cheque users to better understand their local USD payment needs, while raising awareness of existing USD payment solutions, including banks’ cross-border payment options that cater to both corporates and individuals within Singapore. In parallel, MAS is working with the financial industry to develop more cost-efficient digital solutions to facilitate local USD transfers.
Reference materials
The following materials are available from the MAS website www.mas.gov.sg and ABS website www.abs.org.sg: