It’s one of those small things in life that irritate many consumers: a long queue because those in line want to get rid of excess change in their wallets, so you see people who bring out over a dollar’s worth of 10-cent coins, 20-cent coins, etc…
We’re not saying everyone’s like that, but to those guilty of the above, you know who you are.
Now the Monetary Authority of Singapore (MAS) is proposing to put an end to the annoyance. A consultation paper was released yesterday to seek public feedback on the matter.
For the uninformed, a legal tender limit is the maximum amount of a coin denomination used for a single transaction. In layman terms, you can only use so many 10-cent coins and so forth when making a purchase, to reduce the inconvenience of both the payee and shopkeeper in settling transactions, as well as the waiting times of customers in a queue.
Of course, it’s also to avoid situations such as this, although the following video makes a clearer point:
Anyway, let’s compare the current and proposed limits:
The current tender limit for coins under the Currency Act – last updated back in 2002 – states that all coins for payment should not exceed $2 for a denomination below 50-cents and $10 for 50-cent coins. One dollar coins have no restrictions for payment.
The proposed limit by MAS seeks to throw all that out the window by enforcing a 10-coin limit across all denominations. Thus, regardless of coin denomination, you’re only allowed to use 10 pieces of each.
Yeah, it’s a rather dry topic for some, and not everyone may kick the habit easily. But if the proposal is successfully passed, it’ll be another step forward in driving Singapore to transform into a cashless society.
The public consultation on the matter will run from Mar 16 to Apr 6, and the feedback form is available on the MAS website.
