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

THE NATIONAL PAYMENT SYSTEMS ACT 2018

Act 17/2018

Proclaimed by [Proclamation No. 2 of 2019] w.e.f. 31 January 2019 Government Gazette of Mauritius No. 111 of 29 November 2018

I assent

PARAMASIVUM PILLAY VYAPOORY
Acting President of the Republic
29 November 2018

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ARRANGEMENT OF SECTIONS

Section

PART I – PRELIMINARY

1. Short title
2. Interpretation
3. Application of Act

PART II – POWERS AND DUTIES OF CENTRAL BANK

4. General powers and duties of central bank
5. Operational role of central bank
6. Cooperation with other authorities

PART III – AUTHORISATION AND LICENSING

7. Authority for grant of authorisation and issue of licence
8. Authorisation to operators
9. Licensing of payment service providers
10. Variation of authorisation or licence

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11. Indirect participant treated as participant
    PART IV – CONSUMER PROTECTION

12. Powers of central bank with respect to consumer protection

13. Transparency of fees and charges

14. Disclosure of terms and conditions

15. Complaints

PART V – RULES TO REGULATE SYSTEMS

16. Rules of systems

PART VI – ONGOING OVERSIGHT AND SUPERVISION

17. Directives, instructions and guidelines
18. Confidentiality
19. Outsourcing of activities
20. Use of agents
21. Liability
22. Compliance with anti-money laundering laws
23. Records
24. Submission of information to central bank
25. Regular and special examinations
26. Fees and charges
27. Appointment, powers and duties of auditors

PART VIA – RESPONSIBILITIES OF DIRECTORS AND OTHER OFFICERS OF LICENCEES

27A. Fit and proper person
27B. Disqualification
27C. Disclosure of interest
27D. Indemnity insurance
27E. Control of advertisement

PART VII – INFRINGEMENTS, REMEDIAL MEASURES AND OFFENCES

28. Infringement and remedial measures
29. Offences
30. Compounding of offences

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PART VIII – SETTLEMENT ACCOUNTS, FINALITY AND COLLATERAL ARRANGEMENTS

31. Settlement accounts
32. Finality of transfer orders, netting and close-out netting
33. Collateral for payment and settlement obligation

PART IX – PROTECTION OF SYSTEMS AND COLLATERAL

34. Law of insolvency
35. Precedence over law of insolvency
36. Default arrangements

PART X – WINDING-UP AND RECEIVERSHIP OF SYSTEM OPERATOR OR PARTICIPANT

37. Notification of insolvency
38. Notification of winding-up or receivership
39. Prohibition
40. System Rules to bind liquidators
41. Preservation of rights
42. Conflict of laws

PART XI – PROVISIONS AFFECTING CHEQUES

43. Presentation of cheque by electronic means

PART XII – ELECTRONIC FUND TRANSFERS AND ELECTRONIC MONEY

44. Electronic fund transfers
45. Electronic money
46. Limited network

PART XIII – MISCELLANEOUS

47. Admissibility of computer entries and electronic copy of document
48. Settlement of disputes
49. Protection from liability
50. Use of information for personal gain
51. Regulations
52. Consequential amendments
53. Transitional provisions
54. Commencement

FIRST SCHEDULE
SECOND SCHEDULE

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THIRD SCHEDULE

An Act

To provide for the regulation, overseeing and supervision of national payment systems and payment systems being operated in Mauritius, to designate the Bank of Mauritius as the authority for that purpose, for common rules for the protection of systems, and for related matters

ENACTED by the Parliament of Mauritius, as follows –

PART I – PRELIMINARY

1. Short title

This Act may be cited as the National Payment Systems Act 2018.

2. Interpretation

In this Act –

“account information service” means an online service to provide consolidated information on payment accounts held by a payment service user with either a payment service provider, other than the one providing the service, or with more than one payment service provider;

Added by [Act No. 18 of 2025]

“affiliate”, in relation to a licensee, includes an entity which – (a) is a holding company, subsidiary company or company which is under common control of the licensee; (b) is a joint venture of the licensee; (c) is a subsidiary company or joint venture of the holding company of the licensee;

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(d) controls the composition of the Board of Directors or other body governing the licensee; (e) exercises, in the opinion of the central bank, significant influence on the licensee in taking financial or policy decisions; or (f) is able to obtain economic benefits from the activities of the licensee;

“agent” means a person who acts on the basis of an authorisation on behalf of a payment service provider in providing payment services;

“authorisation” means an authorisation granted by the central bank under this Act;

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

“Bank of Mauritius Securities” means securities issued by the central bank under section 6(1)(m) and (2) of the Bank of Mauritius Act;

“book entry” means the electronic transfer of securities and other financial assets which does not involve the physical movement of paper documents or certificates;

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

“central counter-party” means an entity which interposes itself between buyers and sellers, so as to become the buyer to every seller and the seller to every buyer in a settlement system;

“central securities depository” means an entity which provides securities accounts held either in electronic or physical form, central safekeeping services, and in whose register securities are immobilised or dematerialised, and enabling securities transactions to be processed by book-entry and which may, in addition, perform the function of securities settlement based on book-entry;

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“cheque image” means a digital representation of the front and back of a cheque and which complies with such minimum safety standards as may be specified by the central bank;

“clearing” means the process of transmitting, reconciling or confirming funds or securities and other financial instruments transfer orders before settlement, the netting of transfer orders and the establishment of final positions for settlement;

“clearing house” means a common entity or common processing mechanism through which participants agree to exchange transfer instructions for funds, securities or other financial instruments;

“clearing system” –
(a) means a system which contains a set of procedures whereby participants present and exchange information relating to the transfer of funds or securities to other participants through a centralised system or at a single location; and (b) includes a mechanism for the calculation of the position of participants on a bilateral or multilateral basis with a view to facilitating the settlement of their obligations;

“closing out” means the process of offsetting existing contracts, which may be used by the clearing house to prevent further losses from positions carried out by an entity which has defaulted;

“collateral” means any asset or third-party commitment which is acceptable to the central bank or operator, as the case may be, to secure an intraday, an overnight, a term or such other credit, regardless of the collateralisation technique such as repo, pledge or other title transfer arrangement, or the existence of a master agreement;

“control”, in relation to a company, means –

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(a) ownership or control of the company, or holding the power to vote 20 per cent or more of a class of voting securities of the company; or (b) consolidation of the company for financial reporting purposes;

“credit card” means a card which authorises the person named on it to charge goods or services to the account of the cardholder or to obtain cash advances on credit basis subject to repayment of the credit extended;

“debit card” means a card with which, or an access method by which, money is automatically deducted from the account of cardholder to pay for goods or services and with which or by which cash may be withdrawn;

“default” –
(a) means an event stipulated in an agreement between a participant and the central bank or an operator as constituting a default; and (b) includes a failure to complete a transfer of funds or securities in accordance with the terms and rules of the system in question;

“default arrangement” –
(a) means an arrangement put in place by a system to limit systemic and other types of risk which arise in the event of default by a participant or a participant appearing to be unable, or likely to become unable, to meet its obligations in respect of a transfer order; and (b) includes any arrangements for – (i) close-out netting; (ii) the closing-out of open positions;

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(iii) the realisation or transfer of collateral security; or (iv) contributions to any settlement guarantee mechanisms;

“defaulter” means a participant in respect of whom action has been taken by a system under its default arrangements;

“dematerialisation” means the elimination of physical certificates or documents of title which represent ownership of securities so that securities exist only as accounting records;

“depository” means an agent who has the primary role of recording, directly or indirectly, holdings of securities and who may, in addition, act as a registry that records the ownership of securities on behalf of an issuer;

“derivative” –
(a) means a financial contract the value of which depends on the value of one or more underlying reference assets, rates or indices, on a measure of economic value or on factual events; and (b) includes interest rate swaps, forward rate agreements, foreign currency swaps, foreign currency rupee swaps, foreign currency options, foreign currency rupee options or any other instrument as the central bank may approve;

“disposition of property” includes a payment made into or out of an account of a participant;

“electronic fund transfer” –
(a) means any transfer of funds which is initiated by a person by way of instruction or authorisation to a payment service provider to debit or credit an account through electronic means; and

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(b) includes point of sale transfers, automated teller machine transactions, direct deposits or withdrawal of funds, transfer initiated by mobile phone, internet, card, cross-border transfer of funds or any other device as the central bank may approve;

“electronic money” –
(a) means electronically, including digitally or magnetically, stored monetary value as represented by a claim on the issuer, which is issued on receipt of funds (legal tender) of an amount equivalent to the monetary value issued for the purpose of making payment transactions and which is accepted as a means of payment by persons, other than the issuer, and is redeemable for cash or a deposit into a bank account on demand; but (b) does not include – (i) monetary value stored in specific instruments, designed to be used for the purchase of goods or services only on the premises of the electronic money issuer or, under a commercial agreement with the issuer, within a limited network of service providers, or because they can be used only to acquire a limited range of goods and services; or (ii) monetary value, which is used to execute payment operations, carried out through a telecommunication, a digital or an information device, where the goods or services bought are delivered and used through a telecommunication, a digital or an information device, and on condition that the operator of the telecommunication, digital or information device is not acting only as intermediary between the payment services user and the provider of goods and services;

“final settlement” means the irrevocable and unconditional transfer of an asset or a financial instrument, or the discharge of an obligation by an operator or its participants in accordance with the terms of the underlying contract;

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

“Financial Services Commission” means the Financial Services Commission established under section 3 of the Financial Services Act;

“Government securities” has the same meaning as in the Public Debt Management Act;

“gross settlement system” means a payment system in which each settlement of funds or securities occurs on the basis of separate or individual transfer orders;

“immobilisation” means the act of concentrating the location of securities in a depository and transferring ownership by book entry;

“indirect participant” means a person for whom transfer orders are capable of being effected through a system pursuant to its or his contractual relationship with a direct participant;

“irrevocability” means a situation in which the transfer of an asset or financial instrument, or the discharge of an obligation by an operator of a system or its participants may not be revoked by the transferor;

“licence” means a licence issued by the central bank under this Act;

“licensee” means a person who has been issued with a licence or granted an authorisation under this Act;

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

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“mobile payment system” means a system which enables the process of money transfer and exchange of money for goods and services between 2 parties using a mobile phone or an electronic mobile device;

“money remittance” means receipt of funds from a payer by a payment service provider on behalf of a payee, without any payment accounts being created in the name of the payer or the payee, and for the sole purpose of transferring the corresponding amount to the payee or to another payment service provider acting on behalf of the payee;

Added by [Act No. 18 of 2025]

“national payment systems” –
(a) means all the services associated with sending, receiving and processing of transfer orders in domestic or foreign currencies; and (b) includes – (i) the issuance and management of payment instruments; (ii) payment systems, clearing systems and settlement systems, including the processing securities and other financial instruments, arrangements and procedures associated to those systems and services; (iii) electronic money clearing and settlement; (iv) recording of monetary and other financial transactions; (v) payment service providers; (vi) mobile payment systems; and (vii) operators, participants and any third party acting on behalf of an operator or a participant, either as an agent or by way of outsourcing agreements, whether entirely or partially operating within Mauritius;

“net settlement” means a settlement procedure in which final settlement of transfer orders occurs on a net basis at one or more discrete, pre-specified times during the processing day;

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“netting” means the conversion into one net claim or one net obligation of claims and obligations resulting from transfer orders which a participant issues to, or receives or receive from, one or more other participants with the result that only a net claim may be demanded or a net obligation be owed;

“netting arrangement” means a written arrangement to convert several claims or obligations into one net claim or one net obligation, including close-out netting arrangements in the context of financial collateral arrangements whereby on the insolvency, dissolution or winding-up of any party to the arrangement – (a) the obligations of the parties are accelerated so as to be immediately due and expressed as an obligation to pay an amount representing their estimated current value or are terminated and replaced by an obligation to pay such amount; (b) an account is taken of what is due by each party to the other in respect of such obligations, and a net sum equal to the balance of the account is payable by the party from whom the larger amount is due to the other party;

“novation” means a process by which the original obligation between a buyer and a seller is discharged through the substitution of the central counter-party as seller to the buyer and buyer to the seller, creating 2 new contracts;

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

“operational risk” means the risk that deficiencies in information systems or internal processes, human errors, management failures, or disruptions from external events shall result in the reduction, deterioration or breakdown of services provided by an operator;

“operator” means the central bank, or any other entity authorised by the central bank or the Financial Services Commission, as the case may be or as the context may require, to operate a system;

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“participant” means –
(a) a financial institution;
(b) a holder of an Investment Banking Licence under the Financial Services Act; (c) a body corporate, the head office of which is outside Mauritius and the functions of which correspond to those of an entity referred to in paragraph (a) or (b); (d) a public authority or an entity guaranteed by the State; or (e) a settlement agent or central counter-party, which is recognised in the rules of a system as eligible to exchange, clear and settle through the system with other participants;

“payment account” means an account held in the name of one or more payment service users which is used for the execution of payment transactions;

Added by [Act No. 18 of 2025]

“payment card” –
(a) means a card or other device, including a code or any other means of access to an account, which may be used to withdraw money or to make payment for goods and services; and (b) includes a debit, credit or stored-value card;

“payment initiation service” means a service to initiate a payment order at the request of a payment service user with respect to a payment account held at a payment service provider, other than the one initiating the payment order;

Added by [Act No. 18 of 2025]

“payment instruction” means an instrument or authorisation, in any form, including electronic means, to effect a payment;

“payment instrument” –

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(a) means any instrument, whether tangible or intangible as the central bank may, by guidelines, specify which enables a person to obtain money, goods or services or to otherwise make payment or transfer money; and (b) includes cheques, funds transfers initiated by any paper or paperless device such as automated teller machines, points of sale, internet and mobile phone and payment cards, including cards involving storage of electronic money;

“payment obligation” means the indebtedness of one participant to another participant as a result of the clearing or settlement of one or more transfer orders relating to funds, securities or foreign exchange transactions;

“payment services” –
(a) means a service specified in the First Schedule; but (b) does not include payment intermediary services provided exclusively outside Mauritius;

“payment service provider” means an entity which provides payment services, other than an entity licensed by the Financial Services Commission to conduct payment intermediary services exclusively outside Mauritius;

“payment system” –
(a) means any system or arrangement for the processing, clearing or settlement of funds; and (b) includes a mobile payment system;

“securities” has the same meaning as in the Securities Act;

“securities settlement system” means a system which enables securities to be transferred and settled by book entry according to a set of predetermined multilateral rules;

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“senior officer” means –
(a) the chief executive officer, deputy chief executive officer, chief operating officer, chief financial officer, secretary, treasurer, chief internal auditor, money laundering reporting officer, compliance officer or manager of a significant business unit, of a licensee; or (b) a person in a similar position and with similar responsibilities as a person referred to in paragraph (a);

“settlement” means the act of discharging obligations by transferring funds or securities between 2 or more parties;

“settlement account” means an account at the central bank, a settlement agent, or a central counter-party used to hold funds or securities, or both, and to settle transactions between participants in a system;

“settlement agent” means an entity which provides accounts for the participants in a system to hold funds or securities and to settle transactions between participants in the system;

“settlement risk” means a risk that settlement will not occur as expected;

“settlement system” means a system established and operated by the central bank or any other system operator which contains a set of procedures for the discharge of payment obligations and of settlement of obligations in relation to securities;

“stored-value card” means a payment instrument which stores electronic money equivalent to the monetary value of funds received from the cardholder;

“system” means a formal arrangement among 3 or more participants, excluding the operator, any settlement agent, central counter-party, clearing house or indirect participant, with common rules and standardised arrangements, established for the purpose of the clearing or execution of transfer orders among participants, and which is governed by Mauritius laws;

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“systemic risk” means the risk arising from –
(a) the inability of a participant to meet its obligations in a system as they become due; or (b) a disruption in the system, which, in the opinion of the central bank, may cause other participants to be unable to meet their obligations as they become due and is likely to have an impact on the stability of the financial system;

“trade repository” means an entity which maintains a centralised electronic record (database) of transaction data;

“transfer order” means –
(a) an instruction by a participant to place at the disposal of a recipient an amount of money by means of a book entry on the accounts of a settlement system for a participant, or an instruction which, when settled, results in the assumption or discharge of a payment obligation as defined by the rules of a payment system, clearing system or settlement system; or (b) an instruction by a participant to transfer book entry securities.

Amended by [Act No. 21 of 2018]; [Act No.11 of 2024]; [Act No. 18 of 2025]

3. Application of Act

(1) Parts II to VII –
(a) shall apply to every payment system; but

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(b) shall not apply to an Official Clearing and Settlement Facility under the Securities Act.
(2) Parts VIII to X and section 47 shall apply to every system operating in Mauritius, including those operated by an Official Clearing and Settlement Facility under the Securities Act. (3) This Act shall be in addition to, and not in derogation from – (a) the Financial Services Act; (b) the Securities Act; and (c) the Securities (Central Depository, Clearing and Settlement) Act.

Amended by [Act No. 9 of 2021]

PART II – POWERS AND DUTIES OF CENTRAL BANK

4. General powers and duties of central bank

(1) Without prejudice to the functions and powers of the Financial Services Commission under the Financial Services Act, the Securities Act and the Securities (Central Depository, Clearing and Settlement) Act, the central bank shall regulate, oversee and supervise the national payment systems and payment systems being operated in Mauritius primarily for the purpose of ensuring their safe, secure, efficient and effective operation and accessibility to the public.

(2) Without prejudice to the generality of subsection (1) and subject to this Act, the central bank may – (a) formulate and adopt a national payment system policy for Mauritius; (b) issue a licence to payment service providers or grant an authorisation to operators of payment systems; (c) determine general or individual conditions, standards, rules and procedures in accordance with this Act and any other implementing measures applicable to any entity to which it has issued a licence or granted an authorisation and their activities and ensure that the conditions, standards, rules and procedures are applied;

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(d) establish a forum for the consideration of matters of policy and mutual interest concerning the national payment systems; (e) issue directives, instructions and guidelines for the operation of the national payment systems; (f) collect, compile, disseminate, on a timely basis, monetary and related financial statistics related to the national payment systems; and (g) perform such other duties relating to payment systems, clearing systems and settlement systems or the issue of payment instruments for the accomplishment of its duties.

(3) The central bank shall, in the discharge of its regulatory, oversight and supervisory functions under this Act, take into account any international oversight standards.

5. Operational role of central bank

(1) The central bank may provide facilities to – (a) a payment system, clearing system or settlement system; and (b) the operators and participants of a payment system, clearing system or settlement system.

(2) The central bank may –
(a) establish, own, operate and participate in the ownership or operation of a payment system, clearing system or settlement system; (b) act as a central counter-party to participants; (c) open and hold cash accounts for operators and participants, which may be used for the clearing and settlement of transfers into a payment system, clearing system or settlement system; (d) hold securities on accounts for operators and participants, which may be used for the operation of a payment system, clearing system or settlement system; (e) extend intraday, overnight, term or such other credit to participants subject to adequate collateral being granted;

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(f) set up a committee for the purpose of advising it on the regulation, oversight and supervision of the national payment systems; (g) act as a central securities depository for Government securities and Bank of Mauritius Securities; (h) act as a securities settlement agent; (i) act as a trade repository.

(3) The systems owned or operated by the central bank under this section shall not require a licence by, or be subject to the supervision of, the Financial Services Commission.

6. Cooperation with other authorities

(1) The central bank and the Financial Services Commission shall cooperate for the purpose of the effective oversight and supervision of the national payment systems.

(2) The central bank may cooperate with other local or foreign public authorities engaged in the regulation and supervision of payment service providers and other entities directly or indirectly involved in payment services and their operation in Mauritius, and the regulation, monitoring and supervision of capital markets in Mauritius, or with other monetary authorities and international or regional organisations dealing with the regulation, oversight and supervision of payment systems.

(3) For the purposes of subsections (1) and (2), the central bank may enter into a memorandum of understanding with the authorities specified in those subsections.

PART III – AUTHORISATION AND LICENSING

7. Authority for grant of authorisation and issue of licence

(1) The central bank shall be the authority which may – (a) authorise a person to operate a payment system, clearing pairing system or settlement system; and (b) issue a licence to a person to act as a payment service provider.

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(2) (a) The central bank may, where it is satisfied that an applicant is eligible for an authorisation or a licence, as the case may be, grant an in-principle approval to the applicant to enable him to proceed with the finalisation of its set up after the central bank has received all relevant documents and information for the processing of the application.

(b) An in-principle approval granted under paragraph (a) shall – (i) not be construed by the applicant as an authorisation to operate a payment system, clearing system or settlement system, or to act as a payment service provider; (ii) not create any legitimate expectation for a positive final determination of the application; and (iii) automatically lapse if the applicant does not satisfy the terms and conditions attached to the in-principle approval.

Amended by [Act No. 11 of 2024]

8. Authorisation to operators

(1) No person, other than the central bank, shall operate a payment system, clearing system or settlement system without an authorisation.

(2) An application for an authorisation shall be made to the central bank in such form and manner, and shall be accompanied by such non-refundable fee, as may be prescribed.

(3) In granting an authorisation, the central bank shall specify the terms and conditions which the operator shall comply with.

(4) The central bank may suspend or revoke an authorisation granted under this Act in such manner as may be prescribed.

(5) An authorisation granted under this Act may be renewed in such manner, and shall be subject to payment of such fee, as may be prescribed.

9. Licensing of payment service providers

(1) No person, other than the central bank or a bank, shall act as a payment service provider without a licence.