MAS and Singapore banks to review safeguards for GIRO payment system
The review will consider measures including allowing customers to set monthly limits on the value and number of GIRO transactions.
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SINGAPORE: The Monetary Authority of Singapore (MAS) will work with banks and the Association of Banks in Singapore to review the GIRO system and improve its safeguards, said MAS board member Alvin Tan on Wednesday (Apr 8).
The review will consider measures including allowing customers to set monthly limits on the value and number of transactions, and enhancing transaction monitoring and due diligence on billing organisations.
Mr Tan, who is also Minister of State for National Development and Trade and Industry, was responding to parliamentary questions about safeguards for consumers who use GIRO arrangements to pay bills.
This comes after some parents were charged the wrong amount through GIRO for their children's student care at Little Professors Learning Centre. Some parents were also charged twice in a month.
The Consumers Association of Singapore (CASE) previously told CNA that it received 10 complaints regarding unauthorised GIRO deductions between Jan 1 last year and Mar 16 this year.
Mr Tan said that, currently, customers can set transaction limits on their GIRO payments, and banks do due diligence checks on billing organisations to ensure they are properly registered businesses and are not linked to any sanctioned or criminal activities.
However, these checks may not be able to prevent errors and potential misuse of GIRO, he said.
"While such cases have been uncommon so far, we agree that the safeguards should be strengthened," he said.
Beyond monthly limits and transaction monitoring, Mr Tan said suggestions from other Members of Parliament and the public will be considered, including those that take reference from systems used overseas.
He advised consumers to review their GIRO arrangements and set appropriate transaction limits.
In response to supplementary questions from MP Shawn Loh (PAP-Jalan Besar), Mr Tan said MAS will work to increase public awareness on existing protections and limitations while the review is ongoing.
The review will start with "lower-hanging fruit", he added. Major enhancements that involve system changes will take time to be developed and tested before they can be implemented, he said.
