MAS to Increase Maximum Deposit Insurance Coverage to S$100,000 per Depositor per Deposit Insurance Scheme Member from 1 April 2024

25 September 2023

On 22 September 2023, the Monetary Authority of Singapore (“MAS“) issued the first part of its Response to feedback received on the “Consultation Paper on Proposed Enhancements to the Deposit Insurance Scheme in Singapore”. The consultation exercise was conducted from 27 June 2023 to 31 July 2023. MAS’ Response will be released in two parts. Part 1 of the Response focuses on the proposed increase in maximum Deposit Insurance (“DI“) coverage from S$75,000 to S$100,000. MAS has published part 1 of its Response first to allow the industry more time to implement the changes.

In its Response MAS states that on 1 April 2024, MAS will increase the Maximum DI Coverage from S$75,000 to S$100,000 per depositor per DI Scheme member. The deadline for MAS Notice DIA-N01 submission has been extended by one month to 15 February 2024. The revised MAS Notice DIA-N01 will be published by 30 December 2023 and will take effect for reporting cycles from 31 December 2023.

Since the DI Scheme is intended to protect the core savings of small depositors, which are primarily denominated in Singapore Dollars, MAS has decided to continue excluding foreign currency deposits from DI coverage.

In its Response MAS also provided the following operational clarifications.

(a) DI Scheme members may continue to accept account opening forms which have not been updated, provided the depositor is subsequently notified of the new Maximum DI Coverage.

(b) There is no requirement to formally notify customers ahead of the increase in Maximum DI Coverage.

(c) It is useful for banks’ collaterals to disclose the specific Maximum DI Coverage. This will increase public awareness of the extent of protection available under the DI Scheme. The Singapore Deposit Insurance Corporation will update DI Scheme members on the transition time to update their collaterals.

Part 2 of the consultation Response will cover the remaining consultation topics and be published in due course, along with the required relevant draft legislative changes.

Click on the following links for more information (available on the MAS website at www.mas.gov.sg):