No. S 76
Banking Act
(Chapter 19)
Banking (Credit Card and Charge Card) (Amendment) Regulations 2009
In exercise of the powers conferred by section 78(2) of the Banking Act, the Monetary Authority of Singapore hereby makes the following Regulations:
Citation and commencement
1.  These Regulations may be cited as the Banking (Credit Card and Charge Card) (Amendment) Regulations 2009 and shall come into operation on 1st March 2009.
Amendment of regulation 2
2.  Regulation 2 of the Banking (Credit Card and Charge Card) Regulations 2004 (G.N. No. S 27/2004) (referred to in these Regulations as the principal Regulations) is amended —
(a)by inserting, immediately before the definition of “business card” in paragraph (1), the following definitions:
“ “affiliated corporation”, in relation to a card issuer, means —
(a)a related corporation, incorporated in Singapore, of the card issuer; or
(b)where the card issuer has a related corporation incorporated outside Singapore —
(i)the branches and offices, located within Singapore, of the related corporation; or
(ii)such branch or office, located outside Singapore, of the related corporation as may be designated by the Authority by notice in writing to the card issuer;
“borrower” means any person to whom a credit facility is granted by a card issuer or any of its affiliated corporations;”;
(b)by deleting the definition of “card issuer” in paragraph (1) and substituting the following definition:
“ “card issuer” means any person carrying on a business of issuing credit cards or charge cards in Singapore;”;
(c)by deleting the definitions of “credit card” and “charge card” in paragraph (1) and substituting the following definitions:
“ “credit card” or “charge card” has the same meaning as in section 56 of the Act but does not include any credit card or charge card referred to in section 57G of the Act;
“credit facility” means —
(a)any advance, loan or other facility granted by a corporation whereby a customer of the corporation has access to any funds or financial guarantee; or
(b)any other liability incurred by a corporation on behalf of its customer;”;
(d)by inserting, immediately after the definition of “finance company” in paragraph (1), the following definitions:
“ “financial institution” means any person licensed, approved, registered or otherwise regulated by the Authority under any written law;
“lender” means a card issuer or any of its affiliated corporations which grants a credit facility to a person;
“medical treatment” has the same meaning as in regulation 2 of the Central Provident Fund (MediShield Scheme) Regulations (Cap. 36, Rg 20);”;
(e)by deleting the full-stop at the end of the definition of “secure” in paragraph (1) and substituting a semi-colon, and by inserting immediately thereafter the following definitions:
“ “securities market” has the same meaning as in paragraph 3 of Part I of the First Schedule to the Securities and Futures Act (Cap. 289);
“share” has the same meaning as in section 4(1) of the Companies Act (Cap. 50);
“share financing loan” means any loan the proceeds of which are applied only towards the subscription for shares listed or to be listed on a securities market;
“unsecured credit facility” means —
(a)a credit facility given without security; or
(b)in respect of a credit facility given with security, any part thereof which at the time the credit facility is given exceeds the market value or, where the Authority is satisfied that there is no established market value, such other value as may be approved by it, of the assets constituting that security.”; and
(f)by inserting, immediately after paragraph (2), the following paragraphs:
“(3)  For the purposes of these Regulations, an unsecured credit facility shall not include the following:
(a)any credit extended on a credit card or charge card;
(b)any bridging loan which complies with such requirements as may be specified by the Authority by notice in writing to the lender;
(c)any loan for the furnishing of any security to the Government in connection with any application for the deferment of any liability under the Enlistment Act (Cap. 93);
(d)any loan for the furnishing of any security to the Government in connection with the employment of a foreign domestic worker;
(e)any loan for the defraying of expenses which are directly attributable to a course of education, including tuition fees and the costs of accommodation, textbooks and computer equipment, where the lender has taken reasonable steps to ascertain that the proceeds of the loan will be applied only towards the defraying of such expenses;
(f)any loan to a sole proprietor or a partnership for a business purpose;
(g)any loan for the repayment of any amount owing by the borrower under another credit facility which has become unsecured as a result of a fall in the value of the security given for that credit facility, where the lender has taken reasonable steps to ensure that the proceeds of the loan are paid to the person who granted that credit facility;
(h)any renovation loan, where —
(i)the lender (being a card issuer or any of its affiliated corporations) has taken reasonable steps to ascertain that the proceeds of the loan will be applied only towards the defraying of the costs of renovations which have been made or will be made;
(ii)the loan repayment period does not exceed 5 years;
(iii)in the case of a renovation loan granted jointly to the borrower and one or more other persons, that other person or each of those other persons is a spouse, child, parent or sibling of the borrower; and
(iv)the total of the following when added together is not more than 6 months’ income of the borrower or $30,000, whichever is the lower:
(A)the renovation loan or, where the loan is granted jointly to the borrower and one or more other persons, the borrower’s share of the loan; and
(B)the aggregate of the outstanding balances of all earlier renovation loans granted to the borrower by the card issuer and any of its affiliated corporations, including the borrower’s share of the outstanding balance of every renovation loan granted jointly to the borrower and one or more other persons by the card issuer or its affiliated corporation;
(i)any loan for the defraying of the costs of any medical treatment, where the lender has taken reasonable steps to ascertain that the proceeds of the loan will be applied only towards the defraying of such costs;
(j)any share financing loan for the purpose of subscription of shares, where the lender is a financial institution and —
(i)the aggregate of the share financing loan and all other share financing loans obtained by the borrower from other persons for the subscription of those shares, together with all the discounts, rebates and other benefits granted to the borrower, in relation to the subscription of those shares, by the lender and other persons, do not exceed 80% of the amount to be paid by the borrower for the subscription of those shares; and
(ii)the lender takes reasonable steps to ensure that the aggregate of the share financing loan and all other share financing loans obtained by the borrower from other persons for the subscription of those same shares, together with all the discounts, rebates and other benefits granted to the borrower, in relation to the subscription of those shares, by the lender and other persons, do not exceed 80% of the amount to be paid by the borrower for the subscription of those shares, including obtaining a written declaration from the borrower on —
(A)whether he has obtained any share financing loan from any person for the subscription of those shares, and the amount and other details of such loan; and
(B)whether he has received any discount, rebate or other benefit from any person in relation to the subscription of those shares, and the amount and other details of such discount, rebate or benefit;
(k)any loan to an officer (other than a director) or employee of the lender, where the lender is a bank in Singapore and the total of the following when added together is not more than one year’s emoluments of that officer or employee:
(i)the loan; and
(ii)the aggregate of the outstanding balances of all earlier loans granted by the lender to that officer or employee.
(4)  In determining whether the total referred to in paragraph (3)(h)(iv) exceeds the amount referred to in that provision, any addition to a renovation loan (included in the aggregate) of any fee, interest, late payment charge or other charge by a lender shall be disregarded.
(5)  For the purposes of paragraph (3)(h)(iv)(A), a borrower’s share of a renovation loan granted jointly to him and one or more other persons shall be the amount derived by dividing the loan by the number of persons to whom the loan is granted.
(6)  For the purposes of paragraph (3)(h)(iv)(B), a borrower’s share of the outstanding balance of a renovation loan granted jointly to him and one or more other persons shall be the amount derived by dividing the outstanding balance of the loan by the number of persons from whom the loan is outstanding.”.
Amendment of regulation 6
3.  Regulation 6 of the principal Regulations is amended —
(a)by deleting paragraphs (1) and (2) and substituting the following paragraphs:
“(1)  Subject to paragraphs (2) and (2A), a card issuer shall not permit any amount to be charged to any credit card or charge card issued to a citizen of Singapore or permanent resident (referred to in this regulation as the cardholder) if that would result in the cardholder’s —
(a)aggregate outstanding amount exceeding his maximum credit limit; or
(b)total outstanding unsecured amount exceeding his overall credit limit.
(2)  A card issuer may permit any amount to be charged to a credit card or charge card that would result in the cardholder’s —
(a)aggregate outstanding amount exceeding his maximum credit limit; or
(b)total outstanding unsecured amount exceeding his overall credit limit,
if the amount by which that limit would be exceeded is represented only by fees, interests and charges (including late payment charges) relating to the use of the card and included by the card issuer in the aggregate outstanding amount or the total outstanding unsecured amount, as the case may be.
(2A)  Subject to paragraphs (2B) and (2C), a card issuer may permit any amount to be charged to a credit card or charge card that would result in the cardholder’s —
(a)aggregate outstanding amount exceeding his maximum credit limit; or
(b)total outstanding unsecured amount exceeding his overall credit limit,
if the cardholder has an annual income of at least $120,000 (or its equivalent in foreign currency) or his total net personal assets exceed $2 million (or its equivalent in foreign currency).
(2B)  A card issuer referred to in paragraph (2A) shall not permit any amount to be charged to a credit card or charge card of a cardholder referred to in that paragraph that would result in the cardholder’s total outstanding unsecured amount exceeding his 8 months’ income if —
(a)the card issuer is a bank in Singapore; and
(b)the cardholder is in a director group of the card issuer.
(2C)  If the Authority, having regard to the specific circumstances of a card issuer referred to in paragraph (2A) (including whether the credit evaluation and credit risk management practices of the card issuer are sufficiently robust to effectively monitor and manage credit risk), issues to the card issuer a written declaration that paragraph (2A) shall no longer apply to the card issuer, then that paragraph shall not apply to the card issuer from the date of the declaration.”;
(b)by inserting, immediately after the words “paragraph (1)” in paragraph (3), the words “or (2B)”;
(c)by inserting, immediately after the words “maximum credit limit” in paragraph (5), the words “or the overall credit limit”;
(d)by deleting the words “a related corporation” in paragraph (b) of the definition of “aggregate outstanding amount” in paragraph (6) and substituting the words “an affiliated corporation”;
(e)by inserting, immediately after the definition of “cardholder” in paragraph (6), the following definition:
“ “director group” has the same meaning as in paragraph 1 of the Fifth Schedule to the Act;”;
(f)by inserting, immediately after the words “2 months’ income” in paragraphs (a) and (c)(A) of the definition of “maximum credit limit” in paragraph (6), the words “(if his annual income is less than $30,000) or 4 months’ income (if his annual income is at least $30,000)”;
(g)by deleting the full-stop at the end of the definition of “maximum credit limit” in paragraph (6) and substituting a semi-colon, and by inserting immediately thereafter the following definitions:
“ “overall credit limit”, in relation to a cardholder, means 2 months’ income (if his annual income is less than $30,000) or 4 months’ income (if his annual income is at least $30,000) of the cardholder;
“total outstanding unsecured amount”, in relation to a cardholder, means the total amount of the following:
(a)the aggregate amount charged to and outstanding on —
(i)all unsecured credit cards and unsecured charge cards issued to the cardholder by a card issuer and any other card issuer which is an affiliated corporation of the first-mentioned card issuer; and
(ii)all supplementary cards issued in respect of each of such credit cards and charge cards; and
(b)the aggregate of the outstanding balances of all unsecured credit facilities granted to the cardholder by the card issuer and any of its affiliated corporations, including the cardholder’s share of the outstanding balance of every unsecured credit facility granted jointly to the cardholder and one or more other persons by the card issuer or its affiliated corporation.”;
(h)by inserting, immediately after paragraph (6), the following paragraphs:
“(7)  In this regulation —
(a)a reference to a credit card or charge card issued by a card issuer shall include a credit card or charge card issued by another card issuer with whom the first-mentioned card issuer merges or consolidates, or whose business (in respect of the issue of credit cards and charge cards) the first-mentioned card issuer acquires; and
(b)a reference to an unsecured credit facility granted by a card issuer or any of its affiliated corporations shall include an unsecured credit facility granted by another person with whom the card issuer or its affiliated corporation, as the case may be, merges or consolidates, or whose business (in respect of the granting of unsecured credit facilities) the card issuer or its affiliated corporation, as the case may be, acquires.
(8)  For the purposes of paragraph (b) of the definition of “total outstanding unsecured amount” in paragraph (6), a cardholder’s share of the outstanding balance of an unsecured credit facility granted jointly to him and one or more other persons shall be the amount derived by dividing the outstanding balance of the unsecured credit facility by the number of persons from whom the unsecured credit facility is outstanding.”; and
(i)by inserting, immediately after the words “Maximum credit limit” in the regulation heading, the words “and overall credit limit”.
New regulation 6A
4.  The principal Regulations are amended by inserting, immediately after regulation 6, the following regulation:
“Merger or consolidation of, or acquisition by, card issuer, etc.
6A.—(1)  A card issuer which has issued a credit card or charge card to a citizen of Singapore or a permanent resident (referred to in this regulation as the cardholder) shall give written notice to the Authority before the card issuer or any of its affiliated corporations —
(a)merges or consolidates with another card issuer which has issued a credit card or charge card, or a corporation which has granted an unsecured credit facility, to the cardholder;
(b)acquires all the shares in another card issuer which has issued a credit card or charge card, or a corporation which has granted an unsecured credit facility, to the cardholder; or
(c)acquires the business of another card issuer which has issued a credit card or charge card, or a person who has granted an unsecured credit facility, to the cardholder.
(2)  If, upon the merger, consolidation or acquisition, the cardholder’s aggregate outstanding amount or total outstanding unsecured amount exceeds his maximum credit limit or overall credit limit, respectively —
(a)the card issuer, the merged card issuer or the card issuer that is formed as a result of the consolidation (as the case may be); or
(b)if the entity that underwent or undertook the merger, consolidation or acquisition is an affiliated corporation of the card issuer, the card issuer,
shall take such steps within such period as may be specified by the Authority by notice in writing to it to ensure that the cardholder’s aggregate outstanding amount or total outstanding unsecured amount ceases to be in excess of his maximum credit limit or overall credit limit, as the case may be.
(3)  In this regulation, “aggregate outstanding amount”, “maximum credit limit”, “overall credit limit” and “total outstanding unsecured amount” have the same meanings as in regulation 6.
(4)  Any card issuer which contravenes paragraph (1) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $25,000.
(5)  Any card issuer which contravenes paragraph (2) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $25,000 and, in the case of a continuing offence, to a further fine not exceeding $2,500 for every day or part thereof during which the offence continues after conviction.”.
Amendment of regulation 7
5.  Regulation 7 of the principal Regulations is amended —
(a)by deleting sub-paragraph (a) of paragraph (2) and substituting the following sub-paragraph:
“(a)the sending or giving of a credit card or charge card (referred to in this regulation as the replacement card) by a card issuer to an individual in renewal or replacement of, or in substitution for, a credit card or charge card —
(i)which has been reported as lost or damaged;
(ii)which has been invalidated on suspicion of any fraud involving the card; or
(iii)the validity period of which is due to expire,
where the replacement card is of the same kind as the second-mentioned card; or”;
(b)by deleting the words “either verbally or” in paragraph (2)(b)(ii);
(c)by deleting sub-paragraph (iii) of paragraph (2)(b) and substituting the following sub-paragraph:
“(iii)no additional credit is granted in respect of the additional card to the individual over and above the aggregate of the credit limit granted by the card issuer to that individual in respect of all the credit cards and charge cards already held by him; and”; and
(d)by inserting, immediately after paragraph (2), the following paragraph:
“(2A)  For the purposes of paragraph (2)(a), a replacement card shall be treated as being of the same kind as a credit card or charge card if the type, terms, conditions and branding, and the fees and charges relating to the use, of the replacement card are the same as that of the second-mentioned card.”.
Amendment of regulation 9
6.  Regulation 9 of the principal Regulations is amended —
(a)by deleting paragraphs (1) to (4) and substituting the following paragraph:
“(1)  A card issuer shall include, in a clear and conspicuous manner, the following information in its credit card or charge card bill issued to a cardholder:
(a)any finance charge or late payment charge which is or will be imposed by the card issuer and the method of computing such charges;
(b)any other penalty or consequence for late payment which is or will be imposed by the card issuer; and
(c)a notice advising prompt settlement of the amount outstanding under the credit card or charge card bill.”; and
(b)by deleting the words “or (2)” in paragraphs (5) and (6).
New regulation 9A
7.  The principal Regulations are amended by inserting, immediately after regulation 9, the following regulation:
“Credit checks with credit bureau
9A.—(1)  A card issuer shall, prior to issuing a credit card or charge card to any person, conduct comprehensive checks with one or more credit bureaus for the purpose of assessing the credit-worthiness of that person.
(2)  Paragraph (1) shall not apply to a credit card or charge card referred to in regulation 7(2).”.
[G.N. Nos. S 198/2004; S 439/2005; S 268/2006]

Made this 22nd day of January 2009.

HENG SWEE KEAT
Managing Director,
Monetary Authority of Singapore.
[SPD021/2000; AG/LEG/SL/19/2003/1 Vol. 8]
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