Efforts have commenced to deliver the services of ‘Favara’ and India’s Unified Payments Interface (UPI) to the public through QR codes, Aishath Asna Hamdi, deputy governor of the Maldives Monetary Authority, said.
Under the bilateral project, the central bank has interlinked Favara, the domestic instant payment system, with UPI, enabling fast monetary transfers from the island nation to India. The service is accessible through the Bank of Maldives and the Maldives Islamic Bank, while regulatory authorities intend to expand participation to all domestic commercial banks and payment service providers. Technical work is currently underway to establish a QR-based merchant system permitting citizens of both nations to settle business transactions directly through domestic mobile applications.
"Looking ahead, we will expand this partnership to QR-based merchant payments so that citizens of both countries can pay businesses directly through their native applications," the deputy governor stated. "Today is merely the beginning. Our hope is that, through new innovations, we can further strengthen Favara cross-border transactions and make sending and receiving money a convenient, affordable, and dignified experience for everyone in need."
Cross-border transfers remain restricted to outward remittances from the Maldives to India, while development for inward transfers proceeds, Deputy Governor Asna underscored. The multi-currency framework will allow customers to execute transfers seamlessly across Maldivian Rufiyaa, US dollar, and Indian Rupee accounts. Individual customers can remit a maximum of INR 24,000, or USD 250, monthly.