30 October 2023

On 22 September 2023, the Monetary Authority of Singapore (“MAS”) issued the first part of its Response to feedback received on its proposed enhancements to the deposit insurance (“DI”) scheme in Singapore. MAS had published a consultation paper on 27 June 2023 to seek views on recommendations to increase the DI coverage and improve the clarity and operational efficiency of the DI scheme.

In the Response, MAS announced that it will proceed with the proposal to increase the maximum DI coverage from S$75,000 to S$100,000 with effect from 1 April 2024, but with a one-month extension in MAS Notice DIA-N01 submissions (relating to information as at the close of business on 31 December 2023) for all DI scheme members.

MAS has decided to continue excluding foreign currency deposits since the DI scheme is intended to protect the core savings of small depositors, which are primarily denominated in Singapore dollars.

The Response also provides the following operational clarifications:

  • DI scheme members may continue to accept account opening forms which have not been updated, provided that notice is subsequently provided to the depositor (e.g. upon submission of the account opening form or via a subsequent update to customers) on the new maximum DI coverage.
  • There is no requirement to formally notify customers ahead of the increase in maximum DI coverage.
  • MAS has assessed that it remains useful to disclose the specific maximum DI coverage in banks’ collaterals to promote public awareness on the extent of protection under the DI scheme. The Singapore Deposit Insurance Corporation will separately update DI scheme members on the transition time to update their collaterals.

Reference materials

The Response is available on the MAS website www.mas.gov.sg.