Limit Charges on Cashier's Orders to Assist Elderly and Digitally Illiterate Who Withdraw Their Own Savings in Cashier's Orders
Prime Minister's OfficeSpeakers
Summary
This question concerns whether the Monetary Authority of Singapore (MAS) can regulate bank charges for cashier's orders issued in an account holder’s name and the assistance available for the digitally illiterate and elderly. Mr Don Wee asked about setting ceiling limits for these charges, which Deputy Prime Minister Lawrence Wong explained currently range from $3 to $15 based on processing costs. Deputy Prime Minister Lawrence Wong stated that while MAS does not set fee limits, it expects banks to disclose fees clearly and deal fairly with customers. He noted that major retail banks may waive fees for the first cashier's order or consider waiver requests from lower-income elderly customers with financial difficulties. Finally, he highlighted that alternative fund transfer methods, such as automated teller machines and Internet banking, remain available to consumers free of charge.
Transcript
1 Mr Don Wee asked the Prime Minister (a) whether MAS can regulate the amount of bank charges levied on cashier's orders made to the account holders' own names for withdrawal of money from their bank accounts; (b) if so, what is the ceiling limit for these charges; and (c) what assistance will be provided to the lower‐income elderly, including the illiterate and digitally illiterate, who may have to pay such charges to withdraw their own savings in the form of cashier's orders.
Mr Lawrence Wong (for the Prime Minister): Cashier's orders are typically used for large transactions, such as property and vehicle purchases, where certainty of payment is critical. Issuing cashier's orders involves additional processing compared to regular cheques, and banks charge a fee – currently $3 to $15 depending on mode of application – to cover these costs.
The Monetary Authority of Singapore generally does not set limits on the fees charged by banks for their products and services, but expects banks to clearly disclose the fees and deal fairly with their customers. For the first cashier's order payable to the account holder's own name, some of the major retail banks would waive the fees. Some other banks that do not automatically waive the fees would consider doing so on request from customers with financial difficulties, including lower-income elderly.
For consumers who wish to transfer their funds to an account in another bank, there are alternative methods of funds transfers, such as via automated teller machines or Internet banking services, that can be used free of charge.