Okay.... the DBS branch has just called me. Finally.
After I chased them this morning via DBS customer
hotline. 
The fella apologized profusely, but like what I told him, how
could I trust them anymore? One simple request for a chequebook,
and they could fark it up so spectacularly?
I told the bugger to set me up on an appointment with his branch
manager tomorrow. I'm gonna personally submit a full complaint
letter detailing this whole fiasco and demanding a full
investigation.
And when all this is done and settled, I'm seriously thinking of
closing down my DBS accounts and going to one of their rivals. I'm
only gonna keep my POSB normal account for NETS/ATM convenience,
and with minimum funds.