Reader Kelvin Goh asked about online bank accounts that do away with pass books and paper statements. "As I understand it, all major banks here are covered by SDIC, whereby up to $50,000 is covered in case a bank fails. If my bank fails and its IT infrastructure is also out of service, how do I go about claiming my money if I have no hard copies showing the balance?" Invest editor Lorna Tan answers the question.
Banks in Singapore adhere to strict technology guidelines set out by the Monetary Authority of Singapore.
Banks are expected to have proper backup procedures to ensure that records can be recovered in the event of a disruption to IT services. Customers need not worry about loss of data as there will be a record.
If your bank fails and it is a member of the Deposit Insurance Scheme, which is administered by the Singapore Deposit Insurance Corporation (SDIC), there is no need for you to file a claim with SDIC. The failed bank would have provided the SDIC with the required data to process compensation.
You just need to keep a lookout for announcements through the mass media on how compensation would be made to you.
Under the scheme, a depositor of a member bank or finance company is automatically insured up to an aggregate limit of $50,000 per depositor per scheme member.