Singapore: Correspondent Banking, Settlement & Access

The access asymmetry is the defining feature. All Singapore-licensed banks hold a current account with MAS, and smaller banks may use agency arrangements; MEPS+ settlement finality and RTGS-account access are therefore structurally available to the bank PSP layer. The SGD non-internationalisation policy — under which SGD credit exceeding S$5m to non-resident financial institutions is restricted — further shapes correspondent and settlement access. By contrast, nonbank direct access to MEPS+/RTGS settlement is constrained, and the conditions under which nonbank PIs/EMIs might obtain direct or indirect settlement access are under-evidenced in the current baseline and recorded as a gap.

This asymmetry is the structural reason nonbank operators rely on bank relationships and overlay schemes (PayNow/FAST participation) rather than direct settlement-layer access, even as the instant-payment overlays narrow the functional gap at the retail level.

Outlook

The settlement layer is stable. The principal open question is the conditions for nonbank PSP direct or indirect access to MEPS+/RTGS settlement, which the baseline does not resolve and which is flagged for firming. The SGD non-internationalisation policy remains a standing constraint on correspondent access.