The Monetary Authority of Singapore (MAS) is proposing new limits on the number of small denomination coins consumers and businesses can use per transaction, and is seeking public feedback on the matter.
In the new proposal, the central bank is suggesting a cap of 10 pieces each of five-cent, 10-cent, 20-cent, 50-cent and one-dollar coins per financial transaction. This would mean the maximum amount a consumer can pay in coins is S$18.50.
There is no limit for payment by one-dollar coins under the current Currency Act. But, there is S$2 limit for transactions in 5-cent, 10-cent and 20-cent coins, and a S$10 limit on fifty-cent coins.
MAS said that these limits help minimise the payee’s inconvenience and cost in handling large quantities of low denomination currency.minimise the payee’s inconvenience and cost in handling large quantities of low denomination currency.
The MAS said that in proposing new limits it is trying to keep the process “simple, intuitive and easy to remember”.
“The limits should serve the objectives of preventing acts of mischief, minimising inconvenience and cost in handling large quantities of low denomination currency,” the central bank added.
The central bank said the limit of 10 coins per denomination will strike “a good balance between the interests of payers, who would want to be able to pay with as many coins as possible, and payees, who would want a limit on the number of coins acceptable for payment to minimise inconvenience to them”.
The MAS is holding a public consultation on the proposed new legal tender limit for coins from March 16 to April 6.
People can email their feedback to the central bank at email@example.com, or visit the MAS’ website.