Some reckon the ban is pointless…
Our central bank wants your opinion. The Monetary Authority Of Singapore is proposing a limit to the maximum number of coins per transaction – for both consumers and businesses.
For instance, you can technically or legally refuse to accept 20 pieces of five-cent coins for a payment of SGD1.
If that is too mind-boggling for you, it means a payer can only use up to 10 pieces of each denomination at one time. Currently, there is no existing limit on one-dollar coins but for 5-cent, 10-cent and 20-cent, they are capped at $2 per denomination.
What The Limit Is All About
According to their press release, the limit comes after MAS surveyed a random sample of the public and sought the opinions of various business associations.
Their reasoning for this seemingly futile implementation is to “help minimise the payee’s inconvenience and cost in handling large quantities of low denomination currency”. MAS also mentioned the fact that this comes after reports that members of the public expressed the need to place limits on legal tender.
The reports surfaced after 2 cases in 2014 where large amount of coins were used for payments; one unhappy customer paid $19,067.85 to a car dealer using just coins whereas the other refunded a $1,010 worth of payment in coins.
Push Towards A Cashless Society
In Budget 2017, the government said that work is underway in creating a Central Addressing System for digital cash transfers. While some believe that this proposed limit will soon lead e-payments, others think it’s simply a waste of resources.
Perhaps, it is a timely proposal and our central bank went the right way in seeking our opinions. With cashless payments like the Apple and Android Pay, it’s one that’s gaining traction despite the risk of unsecured payments. Nonetheless, for our nation to be truly cashless like our China counterpart, MAS should consider incentivising vendors instead of putting in place tender limits.
What Other Singaporeans Have To Say
The limit is not the most pragmatic solution for every business, that’s for sure.
Some also pointed out how pointless the ban is — as it is not common to leverage on coins regardless of whether you’re a payee or payer.
Singapore is definitely not ready to embrace this tender limit seeing as how the use of coins is still evident.
Let us know what your thoughts are on this matter – MAS wants your feedback!
