In a landmark move for the nation’s financial sector, the Maldives Monetary Authority (MMA) has officially launched a cross-border payment service, connecting the national payment system, "Favara," with India’s Unified Payments Interface (UPI).
The integration marks the first time the Maldives’ domestic payment infrastructure has been linked to an international system, placing the country among a select few, including Singapore and Nepal, to establish such a partnership with India’s digital payment giant.
The service was inaugurated at a special ceremony held at the Central Bank, led by MMA Governor Ahmed Munawwar. The event was attended by high-ranking officials including the Minister of Foreign Affairs, Iruthisham Adam and the Indian Ambassador to the Maldives, G.K. Balasubramanian.
The initial phase of the rollout involves the Bank of Maldives (BML) and the Maldives Islamic Bank (MIB). Starting immediately, customers of the two banks can send funds directly to UPI-linked accounts in India via their existing mobile banking apps or internet banking portals. The system streamlines international remittances, when a sender initiates a payment in MVR or USD, the recipient’s Indian bank account is credited instantly in Indian Rupees (INR).
"This is as easy and secure as sending money between two local accounts," the MMA said, highlighting that the system provides full transparency by displaying exchange rates, bank fees, and the recipient’s authenticated name before the transaction is finalised.
The project is the result of a strategic collaboration between the MMA, NPCI International Payments Limited (NIPL), and the Reserve Bank of India (RBI). Maldives is the first country to launch this service so rapidly following the signing of the agreement with NIPL on 24 July 2025.
Currently, the service is limited to person-to-person (P2P) transfers for permitted purposes, including educational expenses, medical costs for long-term visa holders, and family support. In compliance with foreign exchange regulations, a monthly limit of INR 24,000 (USD 250) per customer has been established, though individual banks may set lower thresholds.
The MMA confirmed that a second phase is already in development. This will introduce person-to-merchant (P2M) transactions, allowing Maldivian travelers and businesses to make payments in India using QR codes.
By connecting to UPI—a system that processed over 241 billion transactions between 2024 and 2025—the Maldives aims to provide its citizens with a faster, cheaper, and more efficient way to manage international finances. The MMA hailed this connection as a pivotal step in integrating the Maldives into the world’s most advanced digital economies.