The Reserve Bank of Fiji (RBF) has officially implemented the Credit Union Act 2025, which took effect on March 1, 2026. This important legislation, passed by Parliament in December, follows extensive consultations within the credit union industry, conducted with the support of both the RBF and the Parliamentary Standing Committee.
Under this new Act, the Reserve Bank of Fiji will oversee all functions related to credit unions, including the registration and licensing of entities engaged in credit union operations. This centralized approach aims to enhance regulation and support within the financial sector.
To aid credit unions and cooperatives during the transition to this new regulatory framework, the RBF has introduced a 12-month grace period, as specified in section 169 of the Credit Union Act 2025. This period is designed to provide organizations with ample time to adapt to the changes. During this transitional phase, the RBF plans to work collaboratively with credit unions and cooperatives to ensure the process is smooth and effective.
Credit unions currently in operation are encouraged to maintain their business activities as normal throughout this grace period. The guidance will remain in effect until the RBF finalizes its licensing and registration protocols.
This strategic initiative by the Reserve Bank of Fiji is anticipated to contribute to a more stable and compliant credit union sector, fostering enhanced financial services and bolstering member confidence within the industry. The RBF’s commitment to supporting the transition underscores its proactive stance in strengthening Fiji’s financial landscape, paving the way for sustainable growth and improved service delivery in the credit union sector.