A deposit insurance scheme is a scheme that protects insured depositors, up to a given limit, against losses they may face in the event one of the members of the scheme, which are licensed deposit-taking institutions, fails.
Mauritius has an operational Deposit Insurance Scheme (“Scheme”) as from 14 June 2024, date on which the Mauritius Deposit Insurance Scheme Act 2019 (MDIS Act), promulgated on 2 December 2023, was fully effective.
The objective of the Scheme is to protect insured depositors by guaranteeing a specified level of coverage for their deposits in the event of failure of a bank or a non-bank deposit taking institution in which that they have placed their money. That level of coverage has been set in the MDIS Act at Rs300,000 on a per depositor per Scheme member basis. By assuring depositors that their money is secure, deposit insurance also contributes to maintaining confidence in the banking sector, promoting the overall soundness of the financial system, fostering financial inclusion and thus maintaining financial stability.
The Scheme is administered and managed by the Mauritius Deposit Insurance Corporation Ltd.
ABOUT THE MAURITIUS DEPOSIT INSURANCE CORPORATION LTD
The Mauritius Deposit Insurance Corporation Ltd (MDIC), established under the MDIS Act and incorporated and registered as such on 26 March 2024 under the Mauritius Companies Act 2001, operates as a private company limited by shares and wholly owned subsidiary of the Bank of Mauritius (BOM). The MDIC is governed by a constitution and its powers are laid down in the MDIS Act. Its registered office is 3rd Floor, Bank of Mauritius Old Building, Sir William Newton Street, Port Louis.
The MDIC has a fully constituted Board of Directors of eight members appointed by the BOM, its shareholder. Presently, the Board comprises the following:
- Dr Priscilla Sheshma MUTHOORA THAKOOR – Chairperson
- Mr Rajeev HASNAH – Member
- Mr Ramsamy CHINNIAH – Member
- Ms Marie Bettina Bela Gaëlle SAMINADEN – Member
- Mrs Mary-Jane Christina EDOUARD – Member
- Ms Zakiyah Bibi PEEROO – Member
- Mrs Priya BALGOBIN-SUTCHOO – Member
- Mr Yashodaren UMANEE – Member
The MDIC is staffed with two officers seconded from the BOM, effective April 2024, namely Mr Dhanesswurnath Thakoor as Officer in Charge and Ms Marie Medgee Lauricourt as Manager and Company Secretary.
THE SCHEME FRAMEWORK
The Scheme Framework has been developed in line with the Core Principles for Effective Deposit Insurance Systems issued by the International Association of Deposit Insurers (IADI) domiciled in Basel, Switzerland. The IADI is the global stand setter for deposit insurance.
The Scheme members are banks and non-bank deposit taking institutions licensed and regulated by the BOM.
The Scheme insures depositors who are individuals and residents of Mauritius. Insured deposits comprise both rupee and foreign currency deposits.
The insurance coverage limit, as stated above, is Rs300,000 i.e., around USD6,400, on a per depositor per Scheme member basis. With this limit, it is expected that 90% of individual resident depositors will be fully covered by the Scheme and around 30% of total resident deposits will be covered.
The Scheme is primarily funded by:
- an initial contribution payable by Scheme members calculated in terms of the Third Schedule of the MDIS Act; and
- ex ante annual premiums on a flat rate basis of 20 cents per hundred rupees of insurable deposits (i.e., total deposits of resident individual depositors) of Scheme members.
LINKS
[1] MAURITIUS DEPOSIT INSURANCE SCHEME ACT 2019