Maldives Links Payment System with India’s UPI for Instant Transfers
The Maldives Monetary Authority (MMA) has officially launched the integration of its Instant Payment System, known as ‘Favara’, with India’s Unified Payments Interface (UPI) on July 30, 2026. This significant advancement marks a new era of digital financial connectivity and economic collaboration between the Maldives and India.
Real-Time Money Transfers
With the new integration, individuals in the Maldives can now send money instantaneously to beneficiaries in India. Transfers are initiated in Maldivian Rufiyaa (MVR) and converted to Indian Rupees (INR) through the UPI network, facilitating seamless transactions.
Current Participants
Initially, the service has been launched with the involvement of two banks: Bank of Maldives Plc and Maldives Islamic Bank Plc. Customers of these institutions can easily initiate person-to-person (P2P) transfers to any UPI-supported bank account in India using their respective mobile banking applications, leveraging the Favara payment infrastructure.
Permitted Transaction Types
The launch allows for several categories of remittances. These include family maintenance payments and gifts, both categorized under Foreign Inward and Foreign Outward Remittance. This expansion is set to enhance the remittance capabilities between the two nations.
A Collaborative Effort
This successful implementation is a result of collaborative efforts among various stakeholders, including the MMA, the Reserve Bank of India (RBI), NPCI International Payments Limited (NIPL), and participating financial institutions from both countries.
Background and Future Developments
The integration agreement for the Favara-UPI connection was signed in July 2025. Following a rapid 10-day process for testing and certification, the system has achieved full operational capability. Future phases are planned to expand this collaboration, introducing various cross-border payment solutions, including QR-based merchant payments and more advanced digital services, thereby solidifying the economic rapport between the Maldives and India.
UPI’s Global Reach
UPI is already operational in nine countries, including Cambodia, Singapore, and the United Arab Emirates. This allows Indian travelers to make convenient payments abroad, which highlights the growing international acceptance and importance of the UPI system.
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