Special Bank Accounts to Allow Low-income Grant Recipients to Receive Digital Disbursements

Assoc Prof Jamus Jerome Lim asked the Minister for Social and Family Development (a) whether the effort to implement digital disbursements to replace cash and supermarket vouchers at the Social Services Offices (SSOs) is hindered by low-income grantees who have no access to banking services; and (b) whether special bank accounts may be created for SSO recipients not currently in possession of a bank account in order to receive these disbursements.

Mr Masagos Zulkifli B M M: Social Service Offices (SSOs) use cash and supermarket vouchers in dispensing interim financial assistance today. We have announced plans to transit to digital disbursements and are exploring transfers to client's bank accounts.

Today, banks already help SSO clients open accounts without a minimum deposit or fall-below fee 1 . We will continue to encourage clients to open accounts if they do not have one, as it is beneficial to them to not be excluded from access to financial services.

Note(s) to Question No(s) 33:

1 Fall-below fee is an administrative fee that the bank charges when the account balance falls below the stipulated minimum average daily balance or monthly balance.