Section 12: Licensing of deposit taking business

12. Licensing of deposit taking business (1) No person, other than a non-bank deposit taking institution in operation on 10 November 2004 shall carry on deposit taking business in Mauritius. (2) Every non-bank deposit taking institution in operation on 10 November 2004 shall take out a licence of deposit taking business granted by the central bank. (3) The licence under subsection (2) shall be granted on such terms and conditions as the central bank may determine. (4) Where the central bank grants a licence under this section, it shall notify the applicant thereof in writing and on payment of such appropriate annual licence fee as may be prescribed by regulations made by the central bank, with the approval of the Minister, the central bank shall issue the licence. (5) A non-bank deposit taking institution shall be subject to the same prudential regulation as a bank, including Part III, Part IV, Part V and Part VI and any guidelines and instructions issued thereunder and the existing terms and conditions of non-bank deposit taking institutions shall stand amended to that effect. (Subsec. (5) came into operation on 1 June 2007.) (6) The central bank shall encourage proposals to sell or merge the deposit taking business of an existing non-bank deposit taking institution to— (a) another non-bank deposit taking institution, with the object of establishing a bank; or (b) a bank. B3 – 17 [Issue 7] Banking Act (7) No non-bank deposit taking institution shall— (a) be permitted to extend its network of branches; or (b) close or keep closed a place of business or change the location of its business, without the prior written approval of the central bank. [S. 12 (7) inserted by s. 3 (c) of Act 14 of 2009 w.e.f. 30 July 2009.]