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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).<\/p>\n
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.<\/p>\n
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.<\/p>\n
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.<\/p>\n
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.<\/span><\/p>\n 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.<\/p>\n However, these checks may not be able to prevent errors and potential misuse of GIRO, he said.<\/p>\n “While such cases have been uncommon so far, we agree that the safeguards should be strengthened,” he said.<\/p>\n<\/div>\n