Statute Details
- Title: Banking (Fees) Notification
- Act Code: BA1970-N1
- Type: Subsidiary Legislation (SL)
- Authorising Act: Banking Act (Chapter 19, Sections 8 and 13(1))
- Current status: Current version as at 26 Mar 2026
- Primary purpose: Prescribes licence fees and application fees payable under the Banking Act
- Key provisions: Section 2 (definitions); Section 3 (licence fees); Section 4 (application fees)
- Notable amendments (from legislative history): S 660/2021 (w.e.f. 01/09/2021); S 454/2021 (w.e.f. 01/07/2021); S 841/2019 (w.e.f. 28/01/2020); S 164/2019 (w.e.f. 01/04/2019); earlier revisions including SL 306/2003 and SL 217/2001
What Is This Legislation About?
The Banking (Fees) Notification is a Singapore subsidiary instrument that sets out the specific monetary amounts payable to the regulator (the “Authority”) in connection with banking licensing and related regulatory applications. While the Banking Act establishes the licensing framework, it delegates the detailed fee amounts to be prescribed by notification. This Notification fills that gap by specifying annual licence fees and certain application fees.
In practical terms, the Notification answers a straightforward question for regulated entities and applicants: how much must a bank or merchant bank pay for holding a licence (or for applying to vary licensing conditions), and how much must an applicant pay when seeking particular approvals under the Banking Act. It also defines key terms—such as “full banking licence”, “wholesale banking licence”, and “limited purpose branch”—that determine which fee category applies.
The scope is therefore not about prudential rules or licensing eligibility criteria. Instead, it is about regulatory cost recovery and administrative processing fees. The Notification also includes a discretionary power for the Authority to waive or refund fees, which is important for legal practitioners advising on fee exposure and potential relief in exceptional circumstances.
What Are the Key Provisions?
1) Definitions that drive fee classification (Section 2)
Section 2 provides definitions that are essential for calculating the correct fees. The Notification incorporates meanings from the Payment Services Act 2019 for certain service types (“cross-border money transfer service” and “money-changing service”). It also distinguishes between different banking licence types:
- “full banking licence”: a licence to transact banking business other than a wholesale banking licence.
- “wholesale banking licence”: a licence to transact banking business subject to compliance with guidelines issued by the Authority for the operation of wholesale banks; it also includes a “restricted banking licence” granted before 29 June 2001.
Most importantly for fee computation is the definition of “limited purpose branch”. This is a branch where the services are restricted to a specified list. The list differs depending on whether the bank holds a full banking licence or a wholesale banking licence. The definition is detailed and includes, for example, accepting cash/cheques for certain purposes, verifying identities for new account applications (where initial deposits are by cheque), providing self-service facilities, and providing money-changing and cross-border money transfer services (for the relevant licence type). It also allows for “any other service as the Authority may approve”.
2) Annual licence fees (Section 3)
Section 3 is the core fee schedule. It sets the annual licence fee payable by a bank under sections 8(1) and 13(1) of the Banking Act for each calendar year (or part of a calendar year). The fee depends on (i) the licence type (full vs wholesale) and (ii) the number and type of branches (head office/main office, other branches, and limited purpose branches).
(a) Full banking licence
- Head office (Singapore-incorporated) / main office (foreign-incorporated): $125,000 per year
- Each branch in Singapore (other than a limited purpose branch): $10,000 per year
- Each limited purpose branch: $1,000 per year
(b) Wholesale banking licence
- Head office/main office: $100,000 per year
- Each limited purpose branch: $1,000 per year
Notably, the wholesale banking licence schedule in the extract does not list a fee for “each branch other than a limited purpose branch” in the same way as the full banking licence schedule. This reflects the structural licensing model under the Banking Act and the Notification’s categorisation approach. For practitioners, the key is to ensure the bank’s branch structure is correctly mapped to the defined categories—particularly whether a branch qualifies as a “limited purpose branch” under the detailed service restrictions.
(c) Merchant banks
Section 3(2) extends the fee regime to merchant banks for the annual licence fee payable under section 8(1) of the Banking Act as applied by section 55ZB(1). The annual fee for merchant banks is specified as $35,000 per calendar year (or part thereof). This is a separate category from “banks” holding full or wholesale banking licences.
(d) Waiver or refund power
Section 3(3) provides that the Authority may waive or refund wholly or in part any fee mentioned in Section 3(1) or (2). This discretionary relief is significant in fee disputes or where a bank’s circumstances justify equitable treatment. From a legal advisory perspective, it is important to identify the factual basis for seeking waiver/refund and to confirm whether the Authority has published internal guidance or precedents on how it exercises this discretion.
3) Application fees (Section 4)
Section 4 prescribes “application fees” for specific applications under the Banking Act. These are not general filing fees for all regulatory interactions; rather, they are tied to particular statutory triggers.
(a) Applications under section 7(1)
For the purposes of section 7(9) of the Banking Act, the prescribed amount is $20,000 in relation to an application under section 7(1). While the extract does not reproduce section 7(1), the practitioner should treat this as the fee for the relevant licensing application category contemplated by section 7(1) (typically, an application for a banking licence or related initial authorisation, depending on the Banking Act’s structure).
(b) Applications to vary wholesale banking licence conditions (revoking guidelines-based conditions)
Section 4(1)(b) prescribes $20,000 for an application under section 7(8) to vary conditions of a wholesale banking licence that require compliance with guidelines issued by the Authority in relation to the operation of wholesale banks, by revoking such conditions. This is a targeted fee for a specific kind of variation—one that involves revoking guideline-based conditions.
(c) Additional prescribed amount under section 13A(2)(c)
Section 4(2) prescribes $5,000 for the purposes of section 13A(2)(c) of the Banking Act. Again, the extract does not show the content of section 13A(2)(c), but the fee amount is clearly set. Practitioners should cross-reference the Banking Act provision to determine what type of application or process is contemplated.
(d) Prescribed amount under section 55S(7)(a)
Section 4(3) prescribes $20,000 for the purposes of section 55S(7)(a) of the Banking Act. As with section 13A, the precise procedural context must be confirmed in the Banking Act text.
(e) Waiver or refund power for application fees
Section 4(4) mirrors Section 3(3): the Authority may waive or refund wholly or in part any fee mentioned in Section 4(1), (2) or (3). This provides a consistent relief mechanism across licence and application fees.
How Is This Legislation Structured?
The Notification is structured as a short instrument with a citation provision and a small number of substantive sections:
- Section 1 (Citation): provides the short title “Banking (Fees) Notification”.
- Section 2 (Definitions): sets out interpretive definitions for key terms used in the fee schedule, including the service-based definition of “limited purpose branch”.
- Section 3 (Licence fees): contains the annual fee schedule for full banking licences, wholesale banking licences, and merchant banks, and includes the Authority’s waiver/refund discretion.
- Section 4 (Application fees): sets prescribed application fee amounts for specified Banking Act application pathways and includes waiver/refund discretion.
For practitioners, the structure is intentionally “fee-focused”: it does not attempt to regulate licensing eligibility or ongoing compliance obligations. Instead, it operates as a pricing schedule tied to the Banking Act’s licensing and variation mechanisms.
Who Does This Legislation Apply To?
The Notification applies primarily to banks in Singapore and to banks with relevant licensing status under the Banking Act—specifically those holding full banking licences or wholesale banking licences. The fee amounts are calculated based on the bank’s head/main office and the number and type of branches, with special treatment for “limited purpose branches”.
It also applies to merchant banks to the extent that the Banking Act applies the relevant licensing fee provisions to merchant banks (as reflected in section 55ZB(1) of the Banking Act). Finally, it applies to applicants making certain applications under the Banking Act (including applications under section 7(1) and specified applications to vary wholesale banking licence conditions), because Section 4 prescribes the application fee amounts for those statutory triggers.
Why Is This Legislation Important?
Although the Notification is relatively brief, it is legally and commercially significant because it determines the quantum of regulatory fees payable by licensed banking institutions and applicants. For banks, fees are recurring annual costs, and the branch-based structure means that corporate restructuring, branch conversions, or changes in service scope can affect fee liability.
From a compliance and advisory perspective, the most important practical issue is the classification of branches. The definition of “limited purpose branch” is service-specific and includes a list of permitted activities. A branch that is operationally capable of providing broader services than those listed may not qualify as a limited purpose branch, which could increase the annual fee (for full banking licences, the difference between $10,000 for non-limited branches and $1,000 for limited purpose branches is substantial). Legal practitioners should therefore ensure that licensing documents, operational policies, and actual service delivery align with the defined service restrictions.
Second, the Notification’s waiver/refund provisions provide a procedural lever. While discretion is not automatic, the existence of a statutory basis for waiver/refund can be relevant in fee disputes, administrative errors, or exceptional circumstances. Practitioners should consider whether to frame fee relief requests by reference to the Authority’s discretion under Sections 3(3) and 4(4), and should gather evidence supporting why a waiver/refund is appropriate.
Finally, the Notification’s application fee schedule affects transaction timing and cost planning for licensing and variation processes. Knowing the prescribed amounts early helps counsel advise on budgeting and on whether an application strategy (for example, seeking a particular variation pathway) triggers different fee categories.
Related Legislation
- Banking Act (Singapore): in particular sections 7, 8, 13, 13A, 55S, and 55ZB (as referenced by the Notification)
- Payment Services Act 2019: section 2(1) (definitions of “cross-border money transfer service” and “money-changing service”)
Source Documents
This article provides an overview of the Banking (Fees) Notification for legal research and educational purposes. It does not constitute legal advice. Readers should consult the official text for authoritative provisions.