CHAMBERS AND PARTNERS: BANKING & FINANCE 2021 GUIDE: MAURITIUS CHAPTER
From the issuance of the National Payment Systems (Authorisation and Licensing) Regulations 2021 (Regulations) by the Bank of Mauritius (BoM), which were made operational as from 1 June 2021, to the launching of the MauCAS national QR code within a few months of the announcement made in this year’s Budget, it appears that Mauritius is quickly embarking on its digital transformation era. The MauCAS national QR code is a new method of payment on the BoM’s MauCAS (Mauritius Central Automated Switch) platform.
The amendments brought about to the legislation are testament to the government’s will to provide new ways to access banking services in Mauritius, while fostering support and development for a robust digital banking business in Mauritius.
The establishment of a fintech innovation hub and digital lab in Mauritius is a stepping-stone in the fintech industry, a sector which is fast becoming a competitive market. It is anticipated that, with the BoM’s strong willingness to make digital banking a reality in Mauritius, the BOM will be issuing further guidelines in relation to the regulatory framework for existing and new payment service-providers, fintech and regtech players, with the firm intention of offering broader types of financial products and services in the near future.
Prior to the legislative amendments, investors’ confidence to establish themselves in Mauritius and current fintech entrepreneurs’ confidence to continue their operations in Mauritius were negatively impacted due to the lack of proper regulatory framework or guidelines, which led to uncertainty.
However, the BoM and the FSC are laboriously working on improving the regulatory framework to nurture the profile of Mauritius as an attractive jurisdiction where financial institutions and fintech start-ups can continue to lead digital innovation in the financial sector through further regulatory reforms, global networking and investment.
In light of the extensive developments addressed in the foregoing, it is undeniable that the future of the banking and payment sector in Mauritius looks promising.Read further