PAYMENT SYSTEMS IN SINGAPORE

1 PAYMENT SYSTEMS IN SINGAPORES ingapore388 CONTENTSList of Institutional aspects .. Legal and regulatory PAYMENT instruments and Securities settlement .. Automated Clearing House (ACH).. Credit / charge card Network for Electronic Transfers ( SINGAPORE ) Pte Ltd (NETS) .. Central Depository Pte Ltd (CDP).. The role of other private and public sector SINGAPORE Clearing House Association (SCHA) .. Association of Banks in SINGAPORE (ABS).. Electronic Payments Technical Committee (EPTC).. Controller of Certification Authorities (CCA)..3972 PAYMENT Non-cash PAYMENT Automated Teller Machines (ATM).

2 Electronic Funds Transfer at Point of Sale (EFTPOS) .. Other access channels for banking and Interbank settlement General Interbank SYSTEMS for retail transactions .. SINGAPORE Dollar Cheque Clearing USD Interbank GIRO (IBG).. ATM Real-time gross settlement system - MAS Electronic PAYMENT system (MEPS) .. Participants .. MEPS Interbank Funds Transfer (MEPS-IFT).. Intra-day and end-of-day credit Management and pricing .. Operations of Special use of interbank transfer SYSTEMS for international Traveller's cheques & personal cheques.

3 International ATM Main projects and policies being Cheque Securities settlement SYSTEMS .. SINGAPORE government Pre- settlement .. settlement .. Corporate and statutory boards Pre- settlement .. settlement .. Pre- settlement .. settlement .. Pre- settlement .. settlement .. The use of the securities infrastructure by the MAS .. Major projects and policies being Straight-Through-Processing (STP)..4145. Role of the central Provision of settlement facilities .. MAS role in the development and regulation of PAYMENT Monetary policy & PAYMENT of abbreviationsSingapore Terms & TerminologyABSA ssociation of Banks in SINGAPORE .

4 Refer to Section Refer to Section Clearing House. Refer to Section of Commissioners of Currency, SINGAPORE . Refer to Section Computer Services Pte Ltd. Refer to Section Authorities. Refer to Section A multi-purpose stored value card (also known as e-money) for makingsmall-value retail payments. Refer to Section of Certification Authorities. Refer to Section PCentral Depository ( Pte) Limited. Refer to Section Truncation system . Refer to Section Securities Clearing & settlement system . Refer to Section PDelivery versus PAYMENT .

5 Refer to Section Clearing system . Refer to Sections to Section Payments Committee. Refer to Section Payments Technical Committee. Refer to Section PFree of PAYMENT . Refer to Section GIRO. Refer to Section Delivery Affirmation system . Refer to Section Funds Transfer. Refer to Section Only Banks. Refer to Section Authority of SINGAPORE . Refer to Section Cash Balances. Refer to Section Electronic PAYMENT system . Refer to Section Ink Character Recognition. Refer to Section Liquid Asset. Refer to Section for Electronic Transfers SINGAPORE Pte Ltd.

6 Refer to Sections Full Bank. Refer to Section Offshore Bank. Refer to Section Clearing House Association. Refer to Section & SINGAPORE Dollar Cheque Clearing system . Refer to Section Government Securities. Refer to Section Exchange. Refer to Section Society for Worldwide Interbank Financial Telecommunications. Refer toSection United States Dollar Cheque Clearing system . Refer to Section PAYMENT system comprises the cultural, political, legal, economic and business practicesand arrangements used within a market economy to determine, store and exchange value orownership of goods and services.

7 In its simplest form, a PAYMENT either stems from a tradebetween buyers and sellers in a market, or from a financial PAYMENT SYSTEMS in a market economy can be modeled in three major , the instruments used to deliver payments, then, second, the clearing and settlementprocess involved in a PAYMENT transaction, and finally the actual transfer of funds s PAYMENT SYSTEMS have evolved over the years, driven by technological progress,changing consumer needs and development of new financial activities. It has changed fromone that was based essentially on paper and cash transactions to one today that has a diverserange of cashless PAYMENT instruments, as well as efficient and reliable clearing andsettlement SINGAPORE , the common methods of making retail payments besides using currencyinclude cheques, interbank GIRO debit and credit transfers as well as PAYMENT cards, whichincludes stored-value, debit and credit cards.

8 Banks customers can also use their debit cardsto make third-party account funds transfers and to make bill payments to selectedcommercial and government entities via the ATMs. More recently, banks' customers havebeen able to make bill payments and third party funds transfers through their telephone,mobile and internet banking operates a real-time gross settlement (RTGS) system , MAS Electronic PaymentSystem (MEPS), for large-value SGD interbank fund transfers and the settlement of scriplessSingapore Government Securities (SGS).1 Institutional Legal and regulatory PAYMENT instruments and systemsA number of laws and bye-laws have a bearing on PAYMENT instruments and institutions and GIRO transactions which are cleared through the Automated Clearing Houseare regulated by the following laws and bye-laws: Section 59 of Banking Act allows the Monetary Authority of SINGAPORE (MAS), inconjunction with banks and institutions, to establish a Clearing House to facilitatethe clearing of cheques and other credit instruments, and ensure its smooth operation.

9 Banking (Clearing House) Regulations, , Regulation 1, a subsidiarylegislation administered by MAS sets the framework with respect to clearing withthe Automated Clearing House. The Bills of Exchange Act governs how cheques are drawn, accepted and paid. The Bye-Laws of the SINGAPORE Clearing House Association (SCHA) state the rulesand regulations for participation in the clearing of cheques and 77A of the Banking Act states that only banks authorized by MAS can issue storedvalue instruments that have multiple PAYMENT 59A of the Banking Act makes provision for MAS to establish and operate one ormore Real Time Gross settlement (RTGS) SYSTEMS .

10 MAS is responsible for the smoothoperation of the RTGS system and ensures that participants comply with the rules Currency Act (Chapter 69) establishes the Board of Commissioners of Currency, SINGAPORE (BCCS) in 1967. The Act conferred on the BCCS the sole right to issuecurrencies in SINGAPORE . A notable provision of the Act is that the SINGAPORE Dollar must be100% backed by external assets. This is achieved through the maintenance of a currencyfund consisting of foreign currencies, demand and time deposits, Treasury bills andsecurities, and the increasing trend of electronic transactions, digital signatures are becoming moreimportant, both for identification purposes and to serve as an alternative to hand-writtensignatures.