The maximum online daily withdrawal limit from one's Central Provident Fund (CPF) account will be lowered from S$200,000 to S$50,000 to strengthen safeguards against scams, with effect from Sep. 25, 2024.

According to a press release by the CPF Board, the majority of the victims in scams involving CPF withdrawals had raised the default daily withdrawal limit of S$2,000 before making their online withdrawal.

The CPF Board noted that while the withdrawals were all authorised by the victims, the impact on the victims can be significant, particularly if they had increased their daily withdrawal limit to make larger online withdrawals.

Therefore, lowering the maximum daily withdrawal limit will provides a greater deterrence to scammers and can help to limit the potential losses in a scam.

The default daily withdrawal limit of S$2,000 was first introduced in November 2023 for CPF members aged 55 and above.

CPF members who prefer a different limit could adjust it to an amount from S$0 to S$200,000.

The CPF Board added that out of the more than 26,000 scam cases reported in Singapore, less than 0.1 per cent involved CPF withdrawals.

Majority of CPF members maintain a daily limit of S$50,000 or less

The CPF Board added that such a move would not inconvenience the majority of the CPF members who make legitimate withdrawals as they have maintained a limit of S$50,000 or less.

For the "very small" group of members who have set the limit above S$50,000, they will be notified in advance that their limit will be lowered to S$50,000 on Sep. 25, 2024.

The CPF Board also called on members intending to make large withdrawals to plan in advance, as those who wish to withdraw more than S$50,000 will have to do so over multiple days.

Alternatively, they can  book an appointment to withdraw their preferred amount in-person at CPF Service Centres.

The CPF Board added that generally, the next available appointment would be in a week’s time, and members will receive their withdrawn CPF savings in their bank account registered with the board typically within five working days.

As for the amount that can be withdrawn by CPF members aged 55 and above, it remains unchanged, and is subject to the current withdrawal rules.

One-time update of registered bank account for withdrawals via PayNow

The CPF Board also said that since May 29, 2024, CPF members applying to receive their CPF withdrawals via PayNow will need to undertake a one-time update of their registered bank account with the CPF Board to their PayNow NRIC-linked bank account via the CPF website.

This update will be subject to a 12-hour cooling period and enhanced authentication, similar to existing safeguards for updating personal account details or increasing the daily withdrawal limit, to provide added security.

This one-time update is necessary even for members who had previously withdrawn via PayNow, to fortify security against scams, the CPF Board added.

Members who wish to to enhance the security of their CPF savings may also activate the CPF Withdrawal Lock or lower their daily withdrawal limit.

Top image via CPF Board, Canva Pro