Bank of Mauritius Act 2004

The internet version of this Act is for information only. The authoritative version is the one published in the Government Gazette of Mauritius.

BANK OF MAURITIUS ACT 2004

Act 34/2004

Proclaimed by [Proclamation No. 40 of 2004] w.e.f. 10th November 2004 Proclaimed by [Proclamation No. 40 of 2004] Section 72 (2) w.e.f. 10th January 2005

ARRANGEMENT OF SECTIONS

SECTION

PART I - PRELIMINARY

1. Short title
2. Interpretation

PART II – CONSTITUTION OF BANK 3. Establishment of Bank of Mauritius 4. Objects of Bank 5. Functions of Bank 6. Powers of Bank 7. Endorsement of security under the Code Civil Mauricien 8. Publication of interest rates 9. Limitation on activities of Bank

PART III - CAPITAL AND RESERVE 10. Capital 11. General Reserve Fund and other Reserve Funds

PART IV - BOARD, MANAGEMENT AND STAFF 12. Board of Directors 13. Governor 14. Deputy Governors 15. Tenure of office and declaration of assets 16. Directors other than Governor and Deputy Governors 17. Disqualifications 18. Resignation from office 19. Vacation of office 20. Vacancies in office of Director 21. Meetings of Board 22. Disclosure of interest 23. Secretary 24. Appointment of staff 25. Consultants and other persons engaged to perform services 26. Confidentiality 27. Execution of documents 28. Authorisation of cheques or payment instructions 29. Indemnity

PART V – ACCOUNTING, STATEMENTS AND TRANSPARENCY 30. Financial year 31. Accounts and audit 32. Budget, annual accounts, annual report and returns 33. Transparency

PART VI – CURRENCY 34. Unit of currency 35. Sole right to issue currency 36. Printing of bank notes and minting of coins 37. Legal tender 38. Demonetisation of currency notes and coins 39. Recovery of lost, stolen, mutilated or otherwise damaged currency 40. Possession of paper for currency notes 41. Imitation of currency notes 42. Counterfeit currency notes 42A. Counterfeit digital currency 43. Counterfeiting of coins 43A. Reproduction of currency notes, bank notes or coins 44. Forgery 45. Evidence in proceedings 45B. Special drawing rights

PART VII - OFFICIAL FOREIGN RESERVES AND SPECIAL RESERVE FUND 46. Official foreign reserves 47. Special Reserve Fund

PART VIII - RELATIONS WITH BANKS AND OTHER FINANCIAL INSTITUTIONS 48. Facilities to financial infrastructure and payment scheme providers 48A. - 49. Minimum cash balances 50. Power to issue instructions 50A. Power to make rules 51. Information from banks and other financial institutions 51A. Balance of payment 51B. Collection of statistics 52. Establishment of a Credit Information Bureau 52A. Establishment of Central KYC Registry 53. Offence by bank or financial institution

PART VIIIA – BANKING SERVICES REVIEW PANEL 53A. Banking Services Review Panel 53B. Membership of Review Panel 53C. Termination of appointment 53D. Staff of Review Panel 53E. Proceedings of Review Panel 53F. Determination of Review Panel 53G. Powers of Review Panel 53H. Protection of persons before Review Panel 53I. Offences relating to proceedings of Review Panel 53J. Judicial Review

PART IX – MONETARY POLICY COMMITTEE 54. Monetary Policy Committee 55. Functions of Committee

PART IXA – FINANCIAL STABILITY COMMITTEE 55A. Financial Stability Committee

PART X - RELATIONS WITH GOVERNMENT 56. Government banker and financial adviser 57. Bank may issue public loans 58. Advances to and deposits from the Government 59. Bank to act as Government’s agent

PART XI – MISCELLANEOUS 60. Deposit Insurance 61. Restriction on names of banks 62. Standards of good administration 63. Protection from liability 64. Exemption from taxes 65. Liquidation and reduction of capital of Bank 66. Records 67. Service of process 68. Prosecution for offence 69. Compounding of offences 70. Regulations 71. Repeal and savings 72. Consequential amendments 73. -

FIRST SCHEDULE SECOND SCHEDULE THIRD SCHEDULE FOURTH SCHEDULE FIFTH SCHEDULE

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BANK OF MAURITIUS ACT

PART I - PRELIMINARY

1. Short title

This Act may be cited as the Bank of Mauritius Act.

2. Interpretation

In this Act -

“Bank” means the Bank of Mauritius established under section 3;

“bank” has the same meaning as in the Banking Act;

“banking laws” has the same meaning as in the Banking Act;

“Board” means the Board of Directors referred to in section 12;

“central government” has the same meaning as in the Public Debt Management Act;

“Committee” means the Monetary Policy Committee set up under section 54;

“Consolidated Fund” means the Consolidated Fund referred to in section 103 of the Constitution;

“consultant” includes an adviser, a specialised contractor or any member of staff or officer of an international institution, of a foreign central bank or of any related institution, who is posted at the Bank following a transfer, secondment or loan of staff agreement;

“convertible currency” means such currency as the Board may determine;

“credit” has the same meaning as in the Banking Act;

“credit score” means a number which represents the credit exposure of a consumer;

“Deputy Governor” means the First Deputy Governor, or Second Deputy Governor, appointed under section 14;

“derivatives” means financial instruments including an option, a swap, a futures or forward contract or any other financial product or any combination of such instruments whose market price, value, delivery or payment obligations are derived from, referenced to or based on, but not limited to, underlying securities or commodities prices, assets, rates including interest rates or exchange rates, or indices;

Added by [Act No. 10 of 2010]

“digital currency” means the central bank digital currency issued by the Bank under section 35(1);

Added by [Act No. 7 of 2020]

“Director” means any member of the Board of Directors of the Bank, referred to in section 12(2);

“financial institution” has the same meaning as in the Banking Act;

“Financial Intelligence Unit” means the Financial Intelligence Unit established under section 9(1) of the Financial Intelligence and Anti-Money Laundering Act;

“financial market infrastructure” means payment systems, clearing houses and securities settlement systems;

“Financial Services Commission” means the Financial Services Commission established under the Financial Services Act;

“Government’s recurrent revenue”

(a) means the total revenue, both recurrent and capital, specified in estimates laid before the National Assembly or the Rodrigues Regional Assembly, for any financial year; but

Amended by [Act No. 4 of 2004]; [Act No. 1 of 2015]

(b) does not include –

(i) loans raised;

(ii) proceeds from the sale of fixed or financial assets; and

(iii) grants to the Rodrigues Regional Assembly;

“Governor” means the Governor of the Bank appointed under section 13;

“Mauritius Deposit Insurance Corporation Ltd” means the Mauritius Deposit Insurance Corporation Ltd incorporated and registered under the Companies Act and referred to in the Mauritius Deposit Insurance Scheme Act 2019;

“Minister” means the Minister to whom responsibility for the subject of finance is assigned;

“Ombudsperson for Financial Services” has the same meaning as in the Ombudsperson for Financial Services Act 2018;

“other Director” means a Director, other than the Governor and the Deputy Governors;

“payment scheme” means a contractual or regulatory arrangement with the aim of issuing, accepting, processing and settling a payment instruction;

“payment scheme provider” means any person who, alone or with other entities, contributes to the issuance, acceptance, processing and settlement of payment instructions within a payment scheme;

“public sector agency” includes any Ministry, Government department, local authority, statutory body or the Financial Intelligence Unit;

“repealed Bank of Mauritius Act” means the Bank of Mauritius Act repealed by section 71;

“Securities” –

(a) means Bank of Mauritius Securities issued under section 6(1)(m); and

(b) includes Bank of Mauritius Bills, Notes, Bonds and Shariah-compliant instruments.

Amended by [Act No. 10 of 2010]; [Act No. 27 of 2013]; [Act No. 10 of 2017]; [Act No. 11 of 2018]; [Act No. 21 of 2018]; [Act No. 13 of 2019]; [Act No. 7 of 2020]; [Act No. 15 of 2021]; [Act No. 1 of 2019]

PART II – CONSTITUTION OF THE BANK

3. Establishment of the Bank of Mauritius

(1) The Bank of Mauritius established under the repealed Bank of Mauritius Act shall be deemed to have been established under this Act.

(2) The Bank shall -

(a) be a body corporate with perpetual succession;

(b) have a common seal; and

(c) be capable of entering into contracts, of acquiring, holding and disposing of property, whether movable or immovable and of suing and being sued.

(3) Subject to this Act, the Bank shall, in the furtherance of its objects, perform its functions independently.

(4) Subject to this Act, the Companies Act and the Banking Act shall not apply to the Bank.

4. Objects of the Bank

(1) The primary object of the Bank shall be to maintain price stability and to promote orderly and balanced economic development.

(2) The other objects of the Bank shall be –

(a) to regulate credit and currency in the best interests of the economic development of Mauritius;

(b) to ensure the stability and soundness of the financial system of Mauritius; and

(c) to act as the central bank for Mauritius.

5. Functions of the Bank

(1) The Bank shall have such functions as are necessary to achieve the attainment of its objects and shall, in particular -

(a) conduct monetary policy and manage the exchange rate of the rupee, taking into account the orderly and balanced economic development of Mauritius;

(b) regulate and supervise –

(i) financial institution and any other institution which the Bank may license or authorise under the banking laws to carry out activities in, or from within, Mauritius;

(ii) ultimate and intermediate financial holding companies, incorporated in Mauritius, which have, within the group, at least one subsidiary or joint venture, or such other ownership structure as the Bank may determine, which is a bank or non-bank deposit taking institution licensed by the Bank;

(ba) be the macroprudential authority of Mauritius;

(c) manage, in collaboration with other relevant supervisory and regulatory bodies, the clearing, payment and settlement systems of Mauritius;

(d) collect, compile, disseminate, on a timely basis, monetary and related financial statistics; and

(e) manage the foreign exchange reserves of Mauritius.

(2) The Bank shall -

(a) for the purposes of subsection (1)(a), determine, with the concurrence of the Minister, the accepted range of the rate of inflation during a given period consistent with the pursuit of the price stability objective;

(b) for the purposes of subsection (1) generally, formulate and implement appropriate policies to promote economic activities having due regard to domestic and international economic developments.

(3) For the purposes of section 4(2), the Bank shall -

(a) ascertain and promote the soundness of financial institutions and their compliance with governing laws, rules and regulations;

(b) ensure the adoption by financial institutions of policies and procedures designed to control and manage risks effectively;

(c) adopt policies to safeguard the rights and interests of depositors and creditors of financial institutions, having due regard to the need for financial institutions to compete effectively in the market and take reasonable risks;

(d) monitor system-wide factors that might have or potentially have a negative impact on the financial condition of financial institutions;

(e) promote public understanding of the financial system, including awareness of the benefits and risks associated with different financial products regulated by the Bank, which are offered by financial institutions;

(f) carry out investigations and take measures to suppress illegal, dishonourable and improper practices, market abuse and any potential breach of the banking laws.

Amended by [Act No. 27 of 2013]; [Act No. 18 of 2016]; [Act No. 15 of 2021]

6. Powers of the Bank

(1) Subject to this Act, the Bank may -

(a) open accounts for, accept deposits from, and pay interest on such deposits to -

(i) the Government, and institutions and funds controlled by the Government;

(ii) financial institution or a licensee under the National Payment Systems Act;

(iii) such statutory or corporate bodies as the Board may approve;

(iv) the receiver, the receiver and manager or the liquidator of any financial institution in liquidation;

(aa) set up a development fund for the benefit of small and medium enterprises and require a bank that fails to meet agreed lending targets to small and medium enterprises to contribute to the development fund by depositing, with the Bank at no interest, the difference between its actual lending and the agreed target;

(ab) where any amount is deposited in accordance with paragraph (aa), direct that it shall be on-lent to a commercial bank that meets its target on such terms and conditions as may be prescribed by regulations made by the Minister, after consultation with the Governor;

Added by [Act No. 38 of 2011]

(ac) notwithstanding paragraphs (aa) and (ab), authorise a bank that fails to meet the agreed lending targets to small and medium enterprises to on-lend the amount referred to in paragraph (ab) to another bank which meets the agreed lending targets, on such terms and conditions as may be agreed between the banks;

(b) maintain accounts with foreign central banks and other foreign financial institutions outside Mauritius and act as correspondent, banker or agent for any other central bank, financial institution or other monetary authority and for any international bank or international monetary authority of which Mauritius is a member or associate;

(ba) promote the development of the foreign exchange and derivatives markets;

Added by [Act No. 10 of 2010]

(c) hold and manage the official foreign exchange reserves of Mauritius;

(d) formulate and implement appropriate intervention policies in the foreign exchange market;

(e) promote the development of the money market of Mauritius, including the Islamic money market through the issue of –

(i) such Shariah-compliant instruments as the Bank may determine; and

(ii) such other money market instruments as the Bank may, by rules, guidelines, instructions or directives, determine;

Amended by [Act No. 10 of 2010]; [Act No. 10 of 2017]

(ea) for the development of the primary and secondary markets for Government securities, purchase and sell Government securities;

(f) purchase and sell gold coins, gold bullion, gold or shares or units in gold funds;

(fa) issue a gold certificate in such form and subject to such conditions as the Bank may determine to represent a certificate of ownership of any gold bar held in custody by the Bank in favour of the person who has purchased it;

Added by [Act No. 38 of 2011]

(fb) appoint, on such terms and conditions as it may determine, dealers registered under the Jewellery Act, to offer for sale to the public minted gold bars issued by the Bank;

Added by [Act No. 27 of 2014]

(g) issue bills and demand drafts, and effect remittances of funds;

(h) purchase and sell convertible currencies and purchase, sell, discount and rediscount bills of exchange and Treasury Bills drawn in, or outside Mauritius and maturing within 184 days, exclusive of days of grace, from the date of acquisition;

(i) purchase, sell, discount and rediscount bills of exchange and promissory notes arising out of bona fide commercial transactions and bearing 2 or more acceptable signatures, one of which shall be that of a bank which is a customer of the Bank, maturing within 90 days, or, in the case of bills relating exclusively to exports, maturing within 12 months, exclusive of days of grace, from the date of acquisition by the Bank;

(j) purchase and sell, outright or by way of repurchase agreement, securities of the Government maturing in not more than 20 years, which have been publicly offered for sale or form part of an issue which is being made to the public at the time of acquisition on condition that at any particular date the total value in the books of the Bank of such securities in the ownership of the Bank, other than securities held in terms of paragraphs (ea) and (k), or held by the Bank as collateral under this Act, shall not together at any time exceed 20 per cent of the average of the last 2 published figures of the Government’s recurrent revenue;

Amended by [Act No. 4 of 2008]; [Act No. 1 of 2015]

(k) invest in securities of Government, for any amount, to mature at any time, on behalf of staff funds and superannuation funds and other internal funds of the Bank;

(l) purchase and sell securities payable in convertible currencies where such securities are issued or guaranteed by the Government of a foreign country or by an international organisation or other institution of which Mauritius is a member;

(m) issue and hold Bank of Mauritius Securities, and purchase and sell outright or by way of repurchase agreement, Bank of Mauritius Securities;

(n) grant advances for fixed periods not exceeding 6 months to customers against -

(i) gold coin or gold bullion;

(ii) securities of Government which are publicly issued and are to mature within a period of 20 years;

(iii) bills of exchange and promissory notes which are eligible for purchase, discount or rediscount by the Bank on condition that no advance so secured shall exceed 75 per cent of the nominal value of the instruments pledged;

(iv) warehouse warrants or their equivalent securing possession of goods, in respect of staple commodities or other goods duly insured and with a letter of hypothecation from the owner on condition that no such advance shall exceed 60 per cent of the current market value of the commodities or goods in question;

(v) Bank of Mauritius Securities;

(vi) such other security as the Bank may determine;

(o) in exceptional circumstances, grant advances to financial institutions and such other entities on such terms and conditions and against such securities as Government or the Bank may issue;

(p) grant such advances as the Board may approve to the receiver, receiver and manager or liquidator of a bank in receivership, or in liquidation, as the case may be;

(q) undertake on behalf of customers and correspondents, the purchase, sale, collection, and payment of securities, currencies and credit instruments in Mauritius and abroad, and the purchase and sale of gold and silver;

(r) enter into agreements with international financial organisations to raise funds for the purpose of financing projects or for such other purpose as the Board may approve;

(ra) establish and maintain links and liaison and enter into any agreement or arrangement with such institutions, authorities or agencies as it may determine for the purposes of assisting it in the discharge of its functions and in the furtherance of its objects;

(s) undertake such investment in Mauritius of funds of customers on deposit with the Bank as customers may specifically direct;

(t) notwithstanding any other enactment, appropriate assets of banks or other financial institutions pledged in favour of the Bank, in satisfaction of sums of money owed to the Bank and secured by the pledge;

(u) open and maintain accounts for the Governor, Deputy Governors and members of the staff of the Bank;

(v) appoint banks and other financial institutions to act as its agents in Mauritius, and banks and other financial institutions abroad to act as its agents or correspondents abroad;

(w) regulate the fees or charges in respect of the services provided by financial institutions and impose such limitation on the quantum of those fees and charges as it may determine;

(x) appoint, on such terms and conditions as it may determine, fit and proper persons to act as Primary Dealers;

(y) with the approval of the Minister, subscribe to, hold and sell shares of, provide capital to or invest in, any corporation or company set up for the purpose of facilitating economic development;

(z) under any other banking law, carry out such other functions as are not inconsistent with this Act;

(za) subject to this Act, generally conduct business as a bank and do all such things as are incidental to or consequential on the exercise of its powers or the discharge of its functions under this Act.

(2) (a) The Bank may raise, for monetary policy purposes, loans by the issue of Bank of Mauritius Securities.

(b) Bank of Mauritius Securities shall -

(i) be issued by the Bank in such form and subject to such conditions as the Bank may determine;

(ii) be in such multiples and currencies as the Bank may determine;

(iii) be payable at par at the Bank; and

(iv) specify the date of its maturity.

(c) Bank of Mauritius Securities may be redeemed, before the date of its maturity, on such terms and conditions as may be agreed.

(d) The proceeds of the issue of Bank of Mauritius Securities shall be paid to the Bank.

(e) Bank of Mauritius Securities shall, on redemption, be cancelled by the Bank.

(2A) (a) The Bank may, acting as agent of Government pursuant to section 57, raise loans by the issue of securities for investment in projects or companies promoting the sustainable economic development of Mauritius, including the blue economy and green economy.

(b) Any securities issued under paragraph (a) shall be in such type, form and manner and on such terms and conditions as the Bank may determine.

(c) The Bank may issue such directives, guidelines, instructions or rules as it may determine for the purpose of this subsection.

(d) The Bank may issue such guide, guidelines, directives, rules or instructions, as it may determine, regarding the framework for the issue of sustainable bonds, including blue and green bonds, in Mauritius.

(3) Notwithstanding subsection (1), any shares of any corporation or company held by the Bank under the repealed Bank of Mauritius Act, before 10 November 2004, shall continue to be held by the Bank under this Act.

(4) Notwithstanding this Act, the Bank may –

(a) enter into such agreement;

(b) purchase or otherwise acquire such immovable property or any right therein;

(c) lease such movable or immovable property; and

(d) generally engage in such activities,

as may be reasonably necessary, for the purpose of establishing an Islamic money market in Mauritius.

(5) The Bank may apply to the Judge in Chambers for an order in respect of any matter relating to any of its functions under section 5.

(6) Without prejudice to subsection (5), an order under that subsection may direct the person to do a specified act or refrain from doing a specified act, for the purposes of –

(a) preventing a contravention of the banking laws;

(b) compelling any person to comply with a lawful request, direction or instruction made, issued or given by the Bank under the banking laws;

(c) remedying the effects of a contravention;

(d) ensuring that the person does not commit further contraventions of the banking laws;

(e) preserving the assets of a financial institution; or

(f) compensating any person who has suffered loss because of a contravention.

(7) The Bank shall not be required, as a condition of the making of an interim order under this section, to give an undertaking as to damages.

(8) The power of the Judge in Chambers under this section may be exercised whether or not the person has previously engaged, is engaging or intends to engage in doing or refraining from doing any specified act relating to the purposes referred to in subsection (6).

(9) Without prejudice to this section, the Bank shall have the right to –

(a) institute and conduct proceedings in any Court against any financial institution for the proper application of the banking laws;

(b) ask for and obtain declaratory orders from the Supreme Court;

(c) seek guidance and directions from the Supreme Court on any point of law or as to the interpretation of any provision of the banking laws;

(d) intervene in any proceedings in which a financial institution is a party.

(10) Where, on an application by the Bank, the Judge in Chambers is satisfied that the Bank has reasonable ground to suspect that a person has committed, is committing or is likely to commit an offence under the banking laws, the Judge in Chambers may order –

(a) the prohibition by the suspect or any other person acting on his behalf, or any person holding assets on his behalf, from disposing, transferring or pledging any of his assets or making any withdrawal from any account or deposit at a financial institution;

(b) the attachment in the hands of any other person named in the order of all moneys and other property due or owing, or belonging to, or held on behalf of the suspect;

(c) the suspect to make a full disclosure, within such time as may be specified in the order, of all his possessions and the nature and source of such possessions;

(d) any other person named in the order to make a full disclosure of all moneys and property held on behalf of the suspect; or

(e) the opening, in the presence of a person authorised by the Bank, of any safe deposit box held in any bank on behalf of the suspect.

(11) Where an order is made under subsection (10) (a) or (b), the Bank may –

(a) give public notice of the order, unless the Bank reasonably believes that such notice is likely to obstruct the conduct of any investigation under this Act; and

(b) give notice of the order to all notaries and to the head offices of all banks and branches, investment dealers, cash dealers and financial institutions and any other person who may hold or be vested with property belonging to or held on behalf of the suspect.

(12) An order under subsection (10) shall be served on the suspect and on each person named in the order.

(13) Where a notice is published under subsection (11), any person who allows, procures or facilitates the disposal of money or property belonging to the suspect shall commit an offence.

(14) (a) The Judge in Chambers may, on application and on good and sufficient cause shown, authorise such reasonable amounts to be withdrawn from a bank or other financial institution for the subsistence of the suspect on such conditions as the Judge may determine.

(b) The Bank shall be a party to any application under paragraph (a).

(15) An order under subsection (10) (a) or (b) shall remain in force –

(a) where an investigation is being carried out by the Bank or Commissioner of Police, until the completion of the investigation, or until such time as the Bank or the Commissioner of Police decides not to proceed with the investigation or recommends that the order be lifted; or

(b) where the suspect is charged with an offence, until the final determination of that charge by a Court or until such time as the Director of Public Prosecutions decides not to proceed with the charge.

(16) In this section –

“suspect” means a person whom the Bank has reasonable ground to suspect has committed, is committing or is likely to commit an offence under the banking laws.

Amended by [Act No. 10 of 2010]; [Act No. 27 of 2012]; [Act No. 27 of 2012]; [Act No. 27 of 2014]; [Act No. 9 of 2015]; [Act No. 18 of 2016]; [Act No. 10 of 2017]; [Act No. 13 of 2019]; [Act No. 1 of 2020]; [Act No. 7 of 2020]; [Act No. 15 of 2021]; [Act No. 12 of 2023]

7. Endorsement of security under the Code Civil Mauricien

(1) Where a security is pledged by any bank or other financial institution in favour of the Bank or another bank or financial institution and the relevant entries have been made by the Bank in its books and records in this respect, such entries shall constitute the endorsement of the security for the purpose of article 2076 of the Code Civil Mauricien and the registration of the pledge for the purpose of article 2077 of the Code Civil Mauricien.

(2) Articles 2129–1 to 2129–6 and articles 2150 – 1 to 2150– 6 of the Code Civil Mauricien shall apply to the Bank as if the Bank were a bank established under the Banking Act.

8. Publication of interest rates

The Bank shall, at all times, make public its interest rates applicable to deposits made with it by, and advances granted to, banks.

9. Limitations on activities of the Bank

(1) Subject to this Act, the Bank shall not -

(a) engage in any trade or acquire any interest in any commercial, agricultural, industrial or any other undertaking, except where –

(ii) such interest is acquired in satisfaction of debts due to the Bank and the interest so acquired is disposed of at the earliest opportunity; or

(ii) the trade relates to activities and operations of The Bank of Mauritius Museum which is owned and operated by the Bank;

(b) purchase, acquire or lease immovable property, except where the premises are necessary for the conduct of its business under this Act;

(c) grant loans upon the security of any shares;

(d) draw or accept bills payable otherwise than on demand;

(e) allow the renewal or substitution of maturing bills of exchange purchased, discounted or rediscounted by or pledged with the Bank;

(f) accept for discount, or as security for an advance made by the Bank, bills or notes signed by the Governor, a Deputy Governor, any other Director or an employee of the Bank;

(g) open accounts for and accept deposits from persons, otherwise than as provided for in sections 6 (1) (a), (b) and (u) and 36(4);

(h) guarantee loans or advances for the Government or any person, nor grant loans or advances to the Government or any person, except as provided for in sections 6(1), 48(1) and 58.

(2) Subject to section 58, the Bank shall not grant any advances, otherwise than as specified in section 6(1) (n), (o) and (p).

(3) Notwithstanding subsection (1) (b), where the Bank is of the opinion that any debt due to it is at risk, the Bank may secure such debts on any immovable or other property of the debtor and may acquire such property, which shall be resold at the earliest available opportunity.

(3A) Notwithstanding subsection (1) (b), the Bank may lease its premises to such public bodies and for such purposes as the Board may determine.

(4) Notwithstanding subsection (1)(e), the Board may, in exceptional circumstances by resolution, authorise either one renewal or one substitution of not more than 50 per cent of the original amount of any such bill for a period not exceeding 90 days.

Amended by [Act No. 18 of 2016]; [Act No. 13 of 2019]; [Act No. 15 of 2022]

PART III - CAPITAL AND RESERVE

10. Capital

(1) Subject to subsection (2), the stated capital of the Bank shall be one billion rupees.

(2) The Minister may, upon the recommendation of the Board, increase from time to time the amount paid as capital of the Bank by transfer from the General Reserve Fund.

(3) The amounts paid as capital shall -

(a) be not less than one billion rupees;

(b) be subscribed and held solely by the Government; and

(c) not be transferable or subject to any encumbrance.

(4) The amount paid as capital of the Bank may be increased from time to time by transfer from the General Reserve Fund referred to in section 11, or the Special Reserve Fund referred to in section 47, of such amounts as the Board may, with the approval of the Minister, resolve.

(5) Notwithstanding any other provision of this Act, the Minister shall cause to be transferred in full ownership to the Bank, negotiable interest-bearing securities issued from time to time by the Government at market rates for such an amount as, in the opinion of the Board, is necessary for the purpose of preserving the amount paid as capital of the Bank from any impairment.

(6) The interest on the securities referred to in subsection (5) shall be equal to-

(a) the interest that the Government is currently paying on securities of one year maturity; or

(b) where securities of such maturity are not outstanding, the interest on any other form of Government indebtedness of which the maturity is closest to one year.

11. General Reserve Fund and other Reserve Funds

(1) The Board shall determine the net profits of the Bank for each financial year, after meeting all current expenditure for that year and after making such provision as it thinks fit for bad and doubtful debts, depreciation in assets, contributions to staff funds and superannuation funds and other contingencies.

(2) The Bank shall establish a General Reserve Fund to which shall be allocated, at the end of every financial year of the Bank, 15 per cent of the net profits of the Bank.

(3) The balance of the net profits for the financial year remaining after the allocation made under subsection (2) shall, subject to subsection (4), be paid into the Consolidated Fund as soon as practicable after the end of every financial year.

(3A) Notwithstanding subsection (3), the Bank may, with the approval of the Board, create, out of its net profits, reserves for monetary policy purposes or such other specific purposes as the Bank may determine in conformity with accounting principles applicable to central banks and best international practices.

(4) Subject to subsection (5), the balance in the General Reserve Fund shall be at least equivalent to the amount paid as capital of the Bank.

(5) Where, at any time, the balance in the General Reserve Fund is less than the amount paid as capital of the Bank, the Bank shall endeavour to bring the balance to the required level.

(6) No allocation under subsection (3) shall be made where, in the opinion of the Board -

(a) the assets of the Bank are, or after such allocation would be, less than the sum of its liabilities and paid up capital; or

(b) the Bank would not be in a financial position to conduct its activities properly.

(7) The Bank may, at the end of any financial year, meet any loss incurred by it in that year from the General Reserve Fund.

Amended by [Act No. 9 of 2015]

PART IV - BOARD, MANAGEMENT AND STAFF

12. Board of Directors

(1) The general policy of the affairs and business of the Bank, other than the formulation and determination of monetary policy, shall, subject to this Act, be entrusted to a Board of Directors.

Amended by [Act No. 17 of 2007]

(2) The Board shall consist of -

(a) the Governor, who shall be the Chairperson;

(b) 2 Deputy Governors; and

(c) not less than 5 and not more than 7 other Directors appointed in accordance with section 16.

(3) In the exercise of its functions, the Board shall not be subject to the direction or control of any other person or authority.

(4) Every Director, other than the Governor and the Deputy Governors, shall be paid such fees as the Minister may determine.

Amended by [Act No. 17 of 2007]

13. Governor

(1) The Governor shall be appointed by the President, on the recommendation of the Prime Minister.

(2) No person shall be appointed as Governor unless the person -

(a) is a citizen of Mauritius;

(b) holds a professional qualification or university degree; and

(c) has recognised experience in banking or financial matters.

(3) The Governor shall be the principal representative of the Bank and shall be responsible for the execution of the policy of the Board and the general supervision of the Bank.

(4) The Governor shall, in the discharge of his functions under this Act, be answerable to the Board.

14. Deputy Governors

(1) The Deputy Governors shall be appointed by the President, on the recommendation of the Prime Minister.

(2) No person shall be appointed as Deputy Governor unless the person -

(a) is a citizen of Mauritius;

(b) holds a professional qualification or university degree; and

(c) has recognised experience in banking or financial matters.

(3) The Deputy Governors shall, under the general supervision of the Governor, be responsible for the day-to-day administration of the Bank.

(4) In the absence of the Governor, the First Deputy Governor shall act as Governor and, in the absence of the Governor and the First Deputy Governor, the Second Deputy Governor shall act as Governor.

15. Tenure of office and declaration of assets

(1) (a) Subject to paragraph (b), the Governor and the Deputy Governors shall be appointed on such terms and conditions as may be specified in the instrument of appointment.

(b) The Governor and Deputy Governors shall hold office for a term not exceeding 5 years and shall be eligible for reappointment.

(2) The Governor or the Deputy Governors shall not, during their tenure of office, hold any other office, whether remunerated or not, except with the consent of the President or as may be expressly provided in any enactment.

(3) Notwithstanding subsection (2), the Governor or any Deputy Governor may be appointed-

(a) member of any commission established by or with the approval of Government to enquire into any matter affecting banking and financial matters in Mauritius; or

(b) Governor, director or member of a board or committee, by whatever name called, of any international authority to which the Bank or Mauritius is a member or party.

(4) A declaration of assets, in the form specified in the First Schedule, shall, within 30 days of his appointment or of the coming into operation of this Act, be deposited by the Governor with the Minister in respect of himself, his spouse, his minor children and grandchildren and subject to subsection (5) children of age.

(5) The declaration shall, in relation to children of age, specify any property sold, transferred or donated to each one of them in any form or manner whatsoever including income or benefits from any account, partnership or trust.

(6) The Governor shall make a fresh declaration of assets by means of an affidavit every 2 years and at the expiry or termination of his employment on any ground.

(7) Subsections (4) and (6) shall apply to every Deputy Governor in the same manner as they apply to the Governor.

16. Directors other than Governor and Deputy Governors

(1) The Directors, other than the Governor and Deputy Governors, shall be appointed by the Minister.

(2) The other Directors shall-

(a) be fit and proper persons of recognised experience in the field of economics, banking, finance, business or law;

(b) be persons of high integrity;

(c) not be actively engaged in any political activity.

(3) (a) Subject to paragraphs (b) and (c), the other Directors shall be appointed on such terms and conditions as may be specified in the instrument of appointment.

(b) The other Directors shall hold office for a term not exceeding 3 years, provided that not more than 2 of the other Directors shall terminate their term of office in the same year.

(c) The other Directors appointed under this section shall be eligible for reappointment.

17. Disqualification

A person shall be disqualified from holding the office of Governor, Deputy Governor or other Director if he -

(a) is employed in any capacity in the public service or holds any office or position for which any salary or other remuneration is payable out of public monies;

(b) is a director, a partner, an official, an employee or a shareholder of any bank or other financial institution;

(c) has committed any default or breach of trust or is guilty of serious misconduct in the discharge of his duties under this Act which, in the opinion of the President or Minister, as the case may be, renders him unfit to be appointed or to continue in office;

(d) has been convicted of an offence of such nature as, in the opinion of the President or Minister, as the case may be, renders it desirable that he should be removed from office; or

(e) is suffering from such mental or physical infirmity as to render him unfit to discharge his duties under this Act.

18. Resignation from office

Any Director may resign his office by giving at least 3 months’ notice in writing of his intention to resign -

(a) in the case of the Governor or a Deputy Governor, to the President; and

(b) in the case of any other Director, to the Minister.

19. Vacation of office

The office of a Director shall become vacant -

(a) on his death;

(b) if he fails to attend 3 consecutive Board meetings without leave of the Board;

(c) where he becomes subject to any disqualification under section 17;

(d) has become insolvent or has assigned his estate for the benefit of his creditors or has made an arrangement or composition with his creditors;

(e) where he resigns from office.

20. Vacancies in office of Director

Where the office of a Director becomes vacant before the expiry of the term for which he has been appointed, another person shall be appointed, for the unexpired period of the term of office of the Director in whose place he is appointed, in accordance with this Part.

21. Meetings of the Board

(1) The Board shall meet at the seat of the Bank at least once every 2 months.

(2) The Governor shall preside at all meetings of the Board.

(3) Every meeting of the Board shall be convened by the Secretary to the Board at the request -

(a) of the Governor; or

(b) in the absence of the Governor, of the First Deputy Governor;

(c) in the latter’s absence, of the Second Deputy Governor; or

(d) at least 3 members of the Board.

(4) At any meeting of the Board, 6 members shall constitute a quorum.

(5) A decision required to be taken by the Board shall be resolved by a simple majority of the members present and voting except that, in the event of an equality of votes, the Chairperson shall have and exercise a second or casting vote.

(6) Subject to this section, the Board shall regulate its meetings and proceedings in such manner as it thinks fit.

Amended by [Act No. 9 of 2015]

22. Disclosure of interest

(1) Where a Director, his spouse or next-of-kin has any direct or indirect interest in relation to any matter before the Board, the Director shall -

(a) disclose, at or before the meeting convened to discuss that matter, the nature of his interests; and

(b) not take part in any deliberation or decision-making process in relation to that matter.

(2) Every disclosure of interest made under this section shall be recorded in the minutes of the Board.

23. Secretary

(1) There shall be a Secretary to the Bank, who shall be appointed by the Board on such terms and conditions as the Board thinks fit, and who shall be assigned such duties as may be determined by the Board.

(2) The Secretary to the Bank may act as Secretary to the Board.

(3) The Secretary to the Board shall –

(a) prepare and attend every meeting of the Board;

(b) keep minutes of its proceedings; and

(c) perform such other duties as may be determined by the Board.

24. Appointment of staff

The Bank may employ, on such terms and conditions as it thinks fit, such persons as may be necessary for the proper discharge of its functions under the banking laws.

25. Consultants and other persons engaged to perform services

(1) Notwithstanding the Equal Opportunities Act, the Bank may, on such terms and conditions as the Board may determine, engage any consultant, or other person, suitably qualified to provide such services to the Bank as it thinks fit.

(2) The terms and conditions of the engagement shall be determined by the Board.

(3) Any person engaged under this section shall, during the period of his engagement, be deemed to be an officer of the Bank for the purposes of section 26.

Amended by [Act No. 14 of 2005]; [Act No. 13 of 2019]

26. Confidentiality

(1) Every Director, every officer or employee of the Bank or any person appointed by the Bank pursuant to the banking laws shall -

(a) in the case of a Director or head of department, take an oath of confidentiality in the form set out in the Second Schedule; and

(b) in any other case, make a declaration of confidentiality before the Chairperson of the Board in the form set out in the Third Schedule,

before he begins to perform any duties under the banking laws.

(2) Except -

(a) for the purposes of -

(i) the performance of his duties or the exercise of his functions under the banking laws; or

(ii) meeting the requirements of an agreement or understanding reached by the Bank with any other relevant supervisory body; or

(b) when lawfully required to do so -

(i) by an order of a Judge in Chambers or any court of law;

(ii) under any enactment; or

(c) where disclosure is necessary to enable the Bank to make a complaint, to lodge a report with, or provide information, to a law enforcement agency in relation to a person involved or suspected to be involved in an offence,

no person referred to in subsection (1) shall, during and after his relationship with the Bank, disclose directly or indirectly to any person any information relating to the affairs of the Bank, of any other bank or financial institution or of any of its customers, which he has acquired in the performance of his duties or the exercise of his functions.

(3) Any person who contravenes this section shall commit an offence and shall, on conviction, be liable to a fine not exceeding one million rupees and to imprisonment for a term not exceeding 5 years.

(4) Nothing in this section shall preclude -

(a) the exchange or disclosure of any information, under conditions of confidentiality, between the Bank and any public sector agency, foreign supervisory institution or authority, international organisation or law enforcement agency, where the Bank is satisfied that the public sector agency, foreign supervisory institution or authority, international organisation or law enforcement agency has the capacity to protect the confidentiality of the information imparted, or between the Bank and any other foreign regulatory agency performing functions similar to those of the Bank under this Act or the National Payment Systems Act 2018, pursuant to any existing or future treaty, or agreement or memorandum of understanding entered into by the Bank or the State of Mauritius;

Amended by [Act No. 18 of 2008]; [Act No. 38 of 2011]

(aa) the disclosure by the Bank to the Financial Services Commission established under the Financial Services Act of such information as may be required by the Commission for the purposes of assisting it in the discharge of its functions;

Added by [Act No. 38 of 2011]

(ab) the Bank from publishing, in whole or in part and at such time as it may decide, any information or data furnished to it under section 24 of the National Payment Systems Act;

(ac) the disclosure by the Bank to the Mauritius Deposit Insurance Corporation Ltd of such information as the Mauritius Deposit Insurance Corporation Ltd may require for the purpose of assisting it in the discharge of its functions;

(b) the disclosure of any information pursuant to an order made by the Judge in Chambers under section 6 of the Mutual Assistance in Criminal and Related Matters Act;

(c) the disclosure of any information to the Financial Intelligence Unit pursuant to section 22 of the Financial Intelligence and Anti-Money Laundering Act;

(d) the disclosure of any information or data by the Bank to Statistics Mauritius to enable the Director of Statistics to discharge, or assist him in discharging, any of his functions under the Statistics Act; or

(e) the disclosure by the Bank of any information, documents and particulars to the Ombudsperson for Financial Services to enable him to discharge, or assist him in discharging, his functions under the Ombudsperson for Financial Services Act

(5) Any information given under subsection (4)(a), (aa) and (d) may be given subject to conditions specified by the Bank, including conditions restricting the use and disclosure of the information imparted.

(5A) (a) Where an institution, authority or agency shares any information with the Bank pursuant to the banking laws, the Bank shall ensure that it has the prior authorisation of the institution, authority or agency for the dissemination of any information exchanged with it, or for the use of that information for supervisory and non-supervisory purposes.

(b) Paragraph (a) shall not apply where the Bank is under a legal obligation to disclose or report the information, in which case, at a minimum, the Bank shall promptly inform the institution, authority or agency of this obligation.

Added by [Act No. 10 of 2024]

(6) For the purposes of this section –

“banking laws” includes the National Payment Systems Act.

Amended by [Act No. 14 of 2007]; [Act No. 18 of 2008]; [Act No. 20 of 2011]; [Act No. 11 of 2018]; [Act No. 17 of 2018]; [Act No. 21 of 2018]; [Act No. 1 of 2019]; [Act No. 10 of 2024]; [Act No. 3 of 2026]

27. Execution of documents

(1) Subject to subsection (2), a deed, instrument, contract or other document shall be executed by or on behalf of the Bank if it is signed underneath the name of the Bank by the Governor or a Deputy Governor.

(2) The powers under subsection (1) may be exercised by the Secretary to the Bank and such other officer of the Bank as the Board may appoint for that purpose.

Amended by [Act No. 18 of 2016]

28. Authorisation of cheques or payment instructions

Any cheque or payment instruction upon any banking account kept by the Bank shall be signed or authorised, as the case may be, jointly by any 2 of -

(a) the Governor;

(b) a Deputy Governor;

(c) officers of the Bank appointed by the Board for that purpose.

29. Indemnity

(1) The Governor, Deputy Governors, other Directors, and every officer or other employee of the Bank shall be indemnified by the Bank against all losses and expenses incurred by any of them by reason of any contract entered into, or act or deed done, in the proper discharge of his duties under the Act.

(2) No person referred to in subsection (1) shall be liable to the Bank for any loss or expense incurred by the Bank on account of the insufficiency or deficiency of value of, or title to, any property or security acquired or taken.

PART V – ACCOUNTING, STATEMENTS AND TRANSPARENCY

30. Financial year

The financial year of the Bank shall begin on 1 July of each year and end on 30 June of the succeeding year.

31. Accounts and audit

(1) The accounting of the Bank shall, at all times, be carried out in conformity with accounting principles applicable to central banks and best international practices.

(2) The accounts of the Bank shall be audited at least once a year by such auditors as may be appointed by the Board.

(3) Subject to subsection (4), no auditor shall be appointed under subsection (2) continuously for a period of more than 5 years.

(4) Where an auditor is appointed continuously for a period of 5 years or less, that auditor shall not be reappointed before a period of 5 years from the date of termination of his last appointment.

32. Budget, annual accounts, annual report and returns

(1) The budget of the Bank in respect of a financial year shall be determined by the Board not later than 15 June immediately preceding that financial year.

(2) The annual accounts of the Bank shall be established in a transparent manner to ensure true and complete data on the financial status of the Bank.

(3) The Bank shall, not later than 4 months after the close of its financial year, cause to be made and submit to the Minister a copy of the annual accounts certified by the auditors together with a report on its operations during that year.

(4) The Minister shall, at the earliest available opportunity, lay a copy of the annual report and audited accounts before the National Assembly.

(5) The Bank shall, as soon as may be practicable, after the last working day of each month, prepare and publish a return of its assets and liabilities as at the close of business on that day.

(6) A copy of the return referred to in subsection (5) shall be submitted to the Minister.

(7) The Bank shall cause to be published in the Gazette—

(a) a copy of the audited accounts referred to in subsection (4) not later than 6 months after the close of its financial year; and

(b) a copy of the return referred to in subsection (5).

Amended by [Act No. 14 of 2005]

33. Transparency

(1) Without prejudice to sections 3(3) and 26, the Bank shall promote open discussions and comments on its monetary and financial stability policies.

(2) The Bank shall publish at least twice a year –

(a) a report on its monetary policy; and

(b) a report on financial stability.

(3) The reports referred to in subsection (2) shall include a review of price and financial stability, and an assessment of the policies of the Bank in relation thereto, followed during the reference period of the relevant report.

Amended by [Act No. 13 of 2019]

PART VI - CURRENCY

34. Unit of currency

The unit of currency in Mauritius shall be the rupee, which shall be divided into 100 cents.

35. Sole right to issue currency

(1) The Bank shall have the sole right to issue Mauritius currency notes, coins and digital currency.

(2) Any person, other than the Bank, who issues digital currency Mauritius currency notes, bank notes or coins or any documents or tokens payable to bearer on demand having the appearance of or purporting to pass as legal tender or as currency or digital currency, shall commit an offence and shall, on conviction, be liable to a fine not exceeding 2 million rupees and to penal servitude.

Amended by [Act No. 7 of 2020]

36. Printing of bank notes, minting of coins and issuing of digital currency

(1) (a) Currency notes issued under this Act shall be –

(i) of such denomination and of such form, design, and content;

(ii) printed from such plates and on such paper or material; and

(iii) authenticated in such manner,

as the Bank may, with the concurrence of the Minister, determine.

(b) Coins issued under this Act shall be of such denominations, of such weight, form and design and made of such metal as the Bank may, with the concurrence of the Minister, determine.

(c) Digital currency issued under this Act shall be in such denomination, design, form and manner as the Bank may, with the concurrence of the Minister, determine.

(2) The Bank shall -

(a) arrange for the printing of currency notes and the minting of coins and for all matters relating thereto;

(b) issue and reissue currency notes and coins;

(c) arrange for the security and safe keeping of unissued stocks of currency notes and coins and for the preparation, safe custody and destruction of any paper, material, plate, block, die or other instrument used for the printing of currency notes and for the minting of coins.

(3) The Bank may make rules to provide for the framework under which digital currency may be issued by the Bank and may be held or used by the public.

(4) Notwithstanding section 6(1)(a), the Bank may, for the purpose of issuing digital currency, open accounts for, and accept deposits from, such persons as it may determine..

Amended by [Act No. 38 of 2011]; [Act No. 18 of 2016]; [Act No. 7 of 2020]; [Act No. 15 of 2021]; [Act No. 15 of 2022]

37. Legal tender

(1) Currency issued by the Bank under this Act shall be legal tender in Mauritius -

(a) in the case of notes and digital currency, for the payment of any amount;

(b) in the case of coins, for the payment of any amount not exceeding 50 times with regard to coins of denomination of less than five rupees and not exceeding 100 times with regard to coins of 5 rupees and higher denominations.

(2) Any currency note issued under this Act shall cease to be legal tender where it is no longer in conformity with the specifications published by the Bank.

(3) Any coin issued under this Act that has been impaired, diminished or lightened otherwise than by normal wear and tear, or has been defaced by having any name, word, device or number stamped or engraved on it, whether the coin has or has not been thereby diminished or lightened, shall no longer be legal tender.

Amended by [Act No. 7 of 2020]

38. Demonetisation of currency notes and coins

(1) Subject to subsection (2), the Board may, by publication in the Gazette, declare that any currency note or coin shall cease to be legal tender and provide for any matters incidental to the calling in and demonetisation of such currency notes or coins.

(2) The holder of any demonetised currency note or coin, referred to in subsection (1), may, within such time and upon such conditions as may be determined by the Board and published in the Gazette, claim payment of the face value of such notes and coins from the Bank.

39. Recovery of lost, stolen, mutilated or otherwise damaged currency

(1) Subject to subsection (2), no person shall be entitled to recover from the Bank the value of any lost, stolen, mutilated or imperfect currency note or coin.

(2) The circumstances in which, and the conditions and limitations subject to which, the value of lost, stolen, mutilated or imperfect currency notes or coins may be refunded shall be within the absolute discretion of the Bank.

40. Possession of paper for currency notes

(1) Any person who, without lawful authority or excuse, makes use of or knowingly has in his possession a paper with a word, figure, device or distinction peculiar to and appearing in the substance of the paper used for currency notes or material upon which the whole or part of a currency note purporting to resemble a currency note has been engraved or made or any facsimile of the signature of any signatory whose signature has appeared or appears on currency notes, shall commit an offence and shall, on conviction, be liable to penal servitude.

(2) Any person who, without lawful authority or excuse, mutilates, cuts, tears or perforates a currency note, or in any way defaces a currency note whether by writing, printing, drawing or stamping or by attaching or affixing to it anything in the nature or form of an advertisement, shall commit an offence and shall, on conviction, be liable to a fine not exceeding 500,000 rupees.

41. Imitation of currency notes

(1) Any person who-

(a) makes or causes to be made;

(b) uses for any purpose; or

(c) alters,

any document purporting to be or in any way resembling or so nearly resembling, as to be calculated to deceive, a currency note or a part of a currency note shall commit an offence and shall, on conviction, be liable to penal servitude.

(2) Any person who, without lawful authority or excuse, makes or knowingly keeps in his possession any plate, block, die or other instrument used for, or capable of being used for, printing or reproducing any document referred to in subsection (1) shall commit an offence and shall, on conviction, be liable to penal servitude.

(3) Any person whose name appears on a document, the making of which is an offence under this section, who refuses to disclose to a police officer the name and address of the person by whom it was printed or made shall commit an offence and shall, on conviction, be liable to a fine not exceeding 500,000 rupees.

(4) The court may, upon the conviction of a person under subsection (1) or (2), order the document and any copies of that document and any plates, blocks, dies or other instruments, which are in the possession of the offender, to be destroyed.

(5) Where the name of a person appears on a document in respect of which a charge for an offence under this section has been laid or on any other document used or distributed in connection with that document, it shall be prima facie evidence that that person caused the document to be made.

(6) In this section,

“currency note”-

(a) means a note issued under this Act; and

(b) includes a foreign currency note that is legal tender in the jurisdiction of a foreign State.

42. Counterfeit currency notes

Any person who, without lawful authority or excuse has in his possession, any forged, counterfeited or altered currency note or any unfinished or incomplete currency note purporting to be issued by the Bank, knowing same to be forged, counterfeited or altered, shall commit an offence and shall, on conviction, be liable to a fine not exceeding one million rupees and to penal servitude.

42A. Counterfeit digital currency

Any person who makes or causes to be made, counterfeits, or alters, a digital currency, or uses a counterfeit digital currency for any purpose shall commit an offence and shall, on conviction, be liable to a fine not exceeding one million rupees and to penal servitude.

Added by [Act No. 15 of 2021]

43. Counterfeiting of coins

(1) Any person who makes or causes to be made, or knowingly offers, utters, disposes of or passes off a counterfeit coin shall commit an offence and shall, on conviction, be liable to penal servitude.

(2) Any person who, without lawful authority or excuse, makes or knowingly keeps in his possession any die or other instrument or machine used or intended to be used for coinage or counterfeiting shall commit an offence and shall, on conviction, be liable to penal servitude.

(3) Any person who, without lawful authority or excuse, has in his possession, knowing the same to be counterfeit, counterfeit coin or tokens purporting to have been issued as coin by the Bank, shall commit an offence and shall, on conviction, be liable to penal servitude.

(4) Any person who, without lawful authority or excuse, melts down, breaks up or uses otherwise than as currency, any coin which has been or is legal tender, whether in Mauritius or in any other country, shall commit an offence and shall, on conviction, be liable to penal servitude.

(5) In this section -

“coin” means a coin issued or deemed to have been issued under this Act;

“counterfeit coin or token” means any coin or token which is counterfeit or resembles or so nearly resembles a coin or token as to be calculated to deceive;

“token” means any chip, coupon or other document which is held out as having been issued as a coin by the Bank and which is intended or calculated to be used as such.

(6) The court shall, on conviction, order the forfeiture and destruction of every coin or token which is the subject of an offence under this section and any metal or other material, die, machine or other equipment or instrument used for, or capable of being used for, making such coins or tokens.

43A. Reproduction of currency notes, bank notes or coins

(1) Except for educational or informational purposes, no person shall, in any size, scale or colour, use any photograph of, or any drawing or design resembling, any Mauritius currency note, bank note or coin issued under section 35 in any form or for any purpose whatsoever, without the written permission of the Bank.

(1A) Any permission under subsection (1) shall be granted against payment of such non-refundable processing fee as the Bank may, with the approval of the Minister, prescribe.

(2) Any person who contravenes this section shall commit an offence and shall, on conviction, be liable to a fine not exceeding 500,000 rupees.

Amended by [Act No. 27 of 2013]; [Act No. 18 of 2016]

44. Forgery

Any person who -

(a) forges or counterfeits or alters a currency note or a word, figure, mark, sign, signature or facsimile upon or attached to the note; or

(b) offers, utters, disposes of, or passes off a currency note, knowing it to be forged or counterfeited or altered,

shall commit an offence and shall, on conviction, be liable to a fine not exceeding 2 million rupees and to penal servitude.

45. Evidence in proceedings

(1) In any proceedings in which the genuineness of a currency note or coin purporting to have been issued by the Bank is in question, a certificate under the hand of a Deputy Governor to the effect that such currency note or coin is spurious or genuine shall be received in all courts as conclusive evidence of the spuriousness or genuineness, as the case may be, of such purported currency note or coin.

(2) The Deputy Governor shall not be examined or cross-examined with respect to any such certificate.

(3) The certificate shall be in the form specified in the Fourth Schedule.

45B. Special Drawing Rights

In any proceedings before any Court, a certificate by a Deputy Governor of the Central Bank stating that –

(a) a sum in rupees has been determined for a special drawing right for a particular date; or

(b) a sum in rupees has been so determined for a date which is the last preceding date for which a sum has been so determined,

shall be conclusive evidence of those matters for the purposes of the Merchant Shipping Act and a document purporting to be such a certificate shall, in any proceedings, be received in evidence and, unless the contrary is proved, be deemed to be such a certificate.

Added by [Act No. 26 of 2007]

PART VII - OFFICIAL FOREIGN RESERVES AND SPECIAL RESERVE FUND

46. Official foreign reserves

(1) Subject to this section, the Bank shall maintain and manage, on a best effort basis, the official foreign reserves of Mauritius consisting of all or any of the following –

(a) gold;

(b) foreign exchange in the form of currency or bank balances held by the Bank or for its account abroad, denominated in convertible currencies;

(c) the holdings by Mauritius of Special Drawing Rights issued by the International Monetary Fund;

(d) securities denominated in convertible currencies, and claims resulting from their purchase or sale and repurchase;

(e) such other assets denominated in convertible currencies as the Board may approve.

(2) The Board shall determine the composition of the official foreign reserves and it shall aim to achieve their security, liquidity and return, in that order of priority.

(3) Subject to subsection (2), the Board shall determine the investment policy regarding the management of the official foreign reserves of Mauritius.

(4) Subject to section 25, the Bank may appoint any consultant, or other person, of international repute and with proven experience, to manage the official foreign reserves on its behalf.

(5) – Repealed by [Act No. 12 of 2023]

Amended by [Act No. 10 of 2017]; [Act No. 13 of 2019]; [Act No. 1 of 2020]; [Act No. 7 of 2020]; [Act No. 12 of 2023]

47. Special Reserve Fund

(1) Any net realised gains or losses in any financial year of the Bank arising from changes in the valuation of its assets or liabilities, or denominated in, gold, Special Drawing Rights, or foreign currencies as a result of any changes in the valuation of its assets or liabilities, or denominated in, gold, Special Drawing Rights, or foreign currencies as a result of a change in the values or exchange rates of gold, Special Drawing Rights, or foreign currencies in terms of the domestic currency, shall be credited or debited to a Special Reserve Fund.

(1A) Any unrealised gains or losses of the Bank in any financial year, arising from changes in the valuation of investments held by the Bank, shall be credited to or debited from the Special Reserve Fund.

Added by [Act No. 38 of 2011]

(2) Neither net gains nor net losses referred to in this section shall be included in the computation of the annual income of the Bank.

(3) The balance standing in the Foreign Exchange Rate Fluctuation Reserve held by the Bank shall be deemed to be transferred to the credit of the Special Reserve Fund.

(4) Where the balance of the Fund is insufficient to cover any net unrealised losses in any financial year, the Government shall, notwithstanding this Act, issue to the Bank negotiable interest bearing Government securities to the extent of the deficiency.

(5) Funds out of the Special Reserve Fund may, with the approval of the Board, be used –

(a) for the purpose of increasing the amount paid as capital of the Bank in accordance with section 10(4);

(b) for monetary policy purposes; and

(c) for transfer to the General Reserve Fund established under section 11.

Amended by [Act No. 9 of 2015]; [Act No. 13 of 2019]; [Act No. 1 of 2020]; [Act No. 12 of 2023]; [Act No. 11 of 2024]

PART VIII - RELATIONS WITH BANKS AND OTHER FINANCIAL INSTITUTIONS

48. Facilities to financial market infrastructure and payment scheme providers

(1) The Bank may provide facilities, including intra-day credit, to payment, clearing and settlement systems and their participants, to ensure the safety, soundness and efficiency of such systems.

(2) The Bank may organise, own, participate in and operate systems referred to in subsection (1).

(3) With a view to promoting sound payment instruments, the Bank may also organise, own, participate in, operate or promote payment schemes.

**Amended by