The Bank of Mauritius was foremost established in September 1967 known as the Central Bank of the state. Central Bank acts as a banker for other Bankss. There were a few amendments in 2004 in order to provide for individual bank licensing that is to divide the banking activities of the offshore and onshore banking. In add-on, the amendments was brought frontward in order to enable Bankss to acquire involved in both domestic and international banking. Furthermore to change the revenue enhancement government for income from the concern and to animate the non-banking sedimentation taking establishment to unify into Bankss. Harmonizing to Section 5 of the Bank of Mauritius Act 2004, the maps of bank includes the controlling of foreign exchange modesty, the issue of notes and coins, the issue of measures to battle the excess liquidness and to follow policies to protect the depositors and the creditors. In add-on Section 6 of the Bank of Mauritius Act 2004 province the powers of the bank. Following the announcement, the bank has the power to buy and sell gold coins, command the foreign exchange militias of Mauritius and accept sedimentations and wage involvements from citizens including authoritiess. The banking sector plays an of import function in the fiscal system of the economic system. In Mauritius, there are some chief Bankss like the Mauritius Commercial Bank ( MCB ) , the State Bank of Mauritius ( SBM ) , the Barclays Bank, HSBC, Bank of Baroda, Bramer Banking Corporation, Bank One, Standard Bank, Standard Chartered Bank, Deutsche Bank, Afrasia Bank and banque diethylstilbestrols Mascareigne. The two most popular bank in Mauritius is the Mauritius Commercial Bank ( MCB ) and the State Bank of Mauritius ( SBM ) which controls about 70 % of the entire assets of the banking system. The two largest foreign bank are the HSBC and the Barclays bank which holds about 22 % of the market.
Payment cards in Mauritius
ATM was introduced in Mauritius in 1987 by the Mauritius Commercial Bank and has non stopped spread outing its web since. Mauritius Commercial Bank ( MCB ) started by presenting Master Card in 1988 and Visa Card in 1991.Other banking establishment besides started to follow this tendency by publishing debit and recognition cards and sharing the ATM web in every corner of the state. Some of the dealing that can be performed through the ATMs of Mauritius are the backdown of hard currency, balance question, paying public-service corporations measures, reassigning financess between two histories and so on. The chief constituents that exists in an ATM machine are a card reader, a show screen, a keyboard and a hard currency dispenser. Nowadays there are about 160 ATMs machine throughout the state. Payment cards like recognition, debit, prepayment and charge card plays an of import function in Mauritius. It facilitates the people from the load of transporting liquid hard currency everyplace. However some topographic points like markets and little stores in Mauritius still need liquid money in order to do purchases. In Mauritius, the holder of a recognition card is offered an agreed recognition bound from his bank and besides the holder may take non to refund the whole sum outstanding at the month terminal. However, an involvement is charged on the outstanding balance. Credit cards involves three parties which are the holder of the card, the merchandiser and the bank or the card publishing organisation. Bank may either be the acquirers or the issuers of recognition cards or both. Examples of most used recognition cards in Mauritius are Visa Card and Master Card. The Mauritius Commercial Bank ( MCB ) and the State Bank of Mauritius ( SBM ) are both the issuers and acquirers of the Visa Card and Master Card. The debit card is besides mostly used in Mauritius. It is an alternate than paying with check and can be used for the purchase of goods and services. The difference from recognition card is that there is no recognition bound installation with debit card alternatively the dealing being processed is straight debited to the card holder history. In Mauritius, there are two types of debit cards which are foremost a debit card which can be used to buy goods and services and supply entree to ATM. An illustration of this type of card would be the Maestro card. On the other manus, the other type of card is that which is useable merely to ATM. An illustration would be Mr Best Card. There besides exists prepayment card in Mauritius and it is issued by the Mauritius Telecom. It consists of a magnetic band and recognition value and is used in public telephones to do call. Car card is besides a payment card used in Mauritius. It is besides known as fleet card and many people used it for payment of gasoline measures. However, the Bank of Mauritius provide certain regulations and demand that have to be followed, that is, bank must print any alterations in involvement rate so that clients be cognizant of. Besides, bank should direct a statement to cutomers about all the payment and backdowns made. In add-on, the client must inform the bank every bit shortly as possible if the card is lost or person else knows the PIN.
Non-cash payment in Mauritius
It occurs when a individual want to debit his history on a fixed day of the month and a regular fixed sum and recognition the sum to the individual concerned. Examples are when paying for gym or rent for a house.
A direct debits or direct backdown is a fiscal dealing designed for the benefit of public-service corporations. It facilitate the work of debitors to pay their money owed at the terminal of the month through standing orders. For illustration, in Mauritius, the Central Water Authority, Central Electricity Board and the Mauritius Telecom uses the direct debits option for the citizens. It facilitate the undertaking of the local people instead that queing to pay their measures and blow their clip. Alternatively the sum due can be deducted straight from the debitor ‘s bank history.
However there is a difference between standing order and direct debits. Standing order is when an direction is given to the bank to do a fixed payment whereas direct debit is when the retail merchant has the right to claim money from the debitor ‘s bank history and run into the measures.
Some people use checks for the purchase of goods and services. When paying by check, there is no demand to transport liquid money. In some part in Mauritius, the ATM machine may be located rather far, therefore in such state of affairs utilizing the checks option is more advantageous. However, the individual publishing the check must ever hold an thought about the current bank balance before publishing it.
Other payment options in Mauritius
Banker ‘s office check
This is a bank check and non a personal check. When person is fixing a banker bill of exchange, the sum is instantly transportation from their ain history to the bank history. When paying with banker bill of exchange, it is safer than personal check because personal checks take clip to be cleared or may be dishonoured or bounced if there is non adequate money in the bank history and the payee receives no money. On the other manus the fact that with banker bill of exchange the sum is instantly transportation to the bank history hence the payee will instantly have the money when presented at the bank.
Travelers ‘ checks
It is a preprinted check which many people utilizations as a signifier of hard currency as it is accepted as a currency. Peoples usually uses this type of payment option when they are on holiday. However since the 1990s, people prefer utilizing payment cards in Mauritius than the traveler check because it is more convenient for travelers and comparatively easy.
Internet Banking in Mauritius
Mauritius Commercial Bank ( MCB ) ltd was the first bank in Mauritius to present cyberspace banking in November 1998. In our little island, cyberspace banking allows clients to make banking dealing at their disposal. However, it besides facilitate the work of busy citizens to carry on their banking dealing at hone instead than traveling to the bank and waste a batch of clip. From the Bankss ‘ point of position, more internet banking in the state would take to a decrease in the bank cost. Mauriitus is sing rapid economic growing because of the variegation from agribusiness to information engineering. The usage of cyberspace banking has proved to be truly advantageous since 1998. Some Bankss in Mauritius who offer the cyberspace banking services are the Mauritius Commercial Bank ( MCB ) , State Bank of Mauritius, Banque des Mascareignes, Barclays and the HSBC.
Legal facets in the banking sector in Mauritius
The Torahs has been revised refering the banking sector in Mauritius. Some chief points of the Banking Act 2004 has been listed below:
No individual has the right to be engaged in banking concern unless a banking licence has been issued by the cardinal bank
Bank are non allowed to be engaged in other concern non specified the banking licence
Every bank must follow the instructions given by the cardinal bank for the proper operation of the Mauritius Automated Clearing and Settlements System ( MACSS )
A bank shall inform the cardinal bank if it set up an machine-controlled Teller machine
Adequate security must be available for clients utilizing ATMs
Merely with the blessing of Minister, the cardinal bank has the right to declare a bank vacation