Silver Bank Collapse: Depositors to Receive Up to Rs 300,000 in State Compensation

Eligible resident individual depositors at the now-defunct Silver Bank Limited will be reimbursed up to MUR 300,000 following the bank’s collapse and the subsequent revocation of its licence.

The Mauritius Deposit Insurance Corporation Ltd (MDIC) confirmed the compensation measures in a recent statement, following the Bank of Mauritius’s decision to withdraw Silver Bank’s banking licence on 30 April 2026.

The MDIC board has since officially declared the institution insolvent.

Compensation Framework

Under the recovery scheme, deposits up to the Rs 300,000 ceiling will be fully covered.

This total includes both the principal capital and accrued interest, though any outstanding debts owed to the bank by the individual will be deducted from the final payout.

For those with balances exceeding the Rs 300,000 threshold, the MDIC stated that the remaining balance may be pursued via a claim filed with the court-appointed liquidator.

Huns Biltoo of KPMG Mauritius has been named as the official receiver for the proceedings.

Payment Process and Timelines

The Bank of Mauritius will act as the agent bank to facilitate these payments.

The process will be governed by a consolidated list of insured depositors currently being prepared by the liquidator.

Once individual files are validated, the MDIC aims for a swift turnaround:

• Direct Transfers: Depositors with active local bank accounts will receive funds via direct credit.
• Cheque Payments: Those without active local accounts will be compensated via cheque, which must be collected from the Bank of Mauritius within three months.

The MDIC has committed to completing payments within seven working days once a claim is successfully verified.

Source: Defi Media