Clause 20

No person shall issue any stored value card except —

a bank which has obtained the approval of the Authority; or

a person for payment only of goods or services or both goods and services provided by that person.(2) The proceeds arising from every issue by a bank of a stored value card may be subject to such reserve and liquidity requirements as the Authority may by notice in writing determine; and the Authority may for any failure to comply with such requirements impose a penalty interest charge of $100 per day or such larger amount as the Authority may determine.(3) The Authority may determine the terms and conditions under which a stored value card may be issued by a bank and that bank shall comply with such terms and conditions.(4) The use of a stored value card to operate a machine provided by the issuer or by some other person under an agreement with the issuer shall be regarded as the production of the stored value card to the issuer.(5) The Authority may exempt from subsection (1) for such period and subject to such terms and conditions as the Authority thinks fit any person who has, before the commencement of the Banking (Amendment) Act 1993, issued stored value cards.(6) Section 14 of the Currency Act [Cap. 69] shall not apply to a stored value card issued by a bank in accordance with this section.(7) Any person who contravenes this section shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $50,000.(8) In this section —“bank” includes the Post Office Savings Bank of Singapore established under the Post Office Savings Bank of Singapore Act [Cap. 237];“stored value card” means a card for which a person pays in advance a sum of money to the issuer in exchange for an undertaking by the issuer that on the production of the card to the issuer or a third party (whether or not some other action is also required), the issuer or the third party, as the case may be, will supply goods or services or both goods and services; and, for the purposes of this definition, “card” includes any token, coupon, stamp, form, booklet or other document or thing.”.