MAS Proposes New Legal Tender Limit For Coins

In a consultation paper released yesterday (March 16), the Monetary Authority of Singapore (MAS) is proposing a new legal tender limit for coins and will seek public feedback before making any final decision. 

Legal tender limits are the maximum amount of a coin denomination that can be used for payment in a single transaction.

MAS is proposing a uniform legal tender limit of 10 coins per denomination in a single transaction for all denominations.

The existing limits are $2 per denomination for five-cent, 10-cent and 20-cent coins, and $10 for 50-cent coins under the Currency Act. There is no existing limit for one-dollar coins.

The main reasons behind the proposed changes were to keep the limit simple and easy to remember, to prevent acts of mischief, and to minimise inconvenience and cost in handling large quantities of low denomination currency, said MAS on its website.

MAS surveyed a random sample of members of the public and various business associations in coming up with the new limit.

“The limit of 10 coins per denomination strikes 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,” said MAS.

The public consultation is held from 16 March to 6 April 2017. More details can be found on the MAS website.

Source: “MAS seeking feedback on proposed limits on using coins for payments”, The Straits Times, 16 March 2017. 

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