MAS: Go green, avoid bank queues by giving e-hongbao

Members of the public are strongly encouraged to give e-cash during Chinese New Year in February next year, as this will support the environment and reduce queues at bank branches, the Monetary Authority of Singapore (MAS) said yesterday.

The Association of Banks in Singapore (ABS), in a separate statement yesterday, also encouraged banking customers to consider using PayNow to e-gift cash.

MAS and ABS have also been working with the financial tech sector to develop e-gifting solutions as an alternative to physical hongbao, or red packets.

For example, the DBS QR Gift and DBS eGift options have been gaining traction over the years, with customer adoption hitting a record high during Chinese New Year this year, DBS Bank said.

The number of unique users of the two e-gift options surged 74 per cent year on year this year, with some $6.3 million loaded onto DBS QR Gift cards this year, up from $2.5 million the year before.

A large proportion of the new notes issued, in particular the $2 notes, are usually circulated back to MAS after Chinese New Year. The returned notes are subsequently destroyed, "as it far exceeds normal circulation demand", MAS said.

"The carbon emissions from the production, transportation and destruction of such new notes each year are highly wasteful, unnecessary and impacts the environment negatively."

Those who prefer to give physical red packets are urged to reuse notes or give QR gift cards instead of using new notes, the central bank said in its statement, adding that "most notes in circulation in Singapore are clean and of good quality, and suitable for use in festive gifting".

Those who still prefer new notes must reserve the notes online before collecting them at participating bank branches.

The banks involved are DBS, OCBC Bank, UOB, Standard Chartered Bank, Maybank and Citibank.

MAS said this will also "complement safe management measures currently in place due to Covid-19".

Those aged 60 and above and people with disabilities are exempted from the initiative.

New notes can also be withdrawn without any prior booking at pop-up ATMs offered by DBS and selected UOB ATMs.

The pre-booking period for new and good-as-new notes will begin on Jan 4.

The collection of notes pre-booked online, the walk-in option for the elderly and people with disabilities, and selected ATM withdrawals will start from Jan 11.