Mauritius: Paynet switches off banks

21 June 2019

Money Transfer

Paynet, a subsidiary of Mauritian financial services provider Payserv Africa, has suspended all local financial institutions from its transacting platform after they refused to pay in foreign currency for its services. This has had the knock-on effect on RTGS payments.

Paynet is the platform used in interbank RTGS transfers. The platform is also used by corporates to facilitate its payments.

The standoff is the latest indication of a worsening economic crisis characterised by a debilitating liquidity crunch, foreign currency shortages, rising inflation, power outages and low productivity.

The development means that there will be limited movement of funds during the standoff, which will affect the general public’s transactions.

The development could also affect the payment on time of salaries to civil servants. Government starts paying its workers mid-month.

In a statement this week, Paynet said they had cut off all banks from using its platform because of their failure to pay for its services.

Source: The Independent