New Delhi
Real-time digital fund transfers between the Maldives and India have commenced through the newly operational Favara-UPI cross-border payment corridor, marking a significant step in strengthening financial connectivity and economic cooperation between the two countries.
The service links the Maldives’ instant payment system, Favara, with India’s Unified Payments Interface (UPI), enabling eligible users in the Maldives to send money directly to UPI-enabled bank accounts in India through mobile banking applications. Transfers are processed in real time, making cross-border remittances faster and more convenient.
Under the arrangement, payments are initiated in Maldivian Rufiyaa and credited to beneficiaries in India in Indian Rupees. The service has initially been introduced through the Bank of Maldives Plc and Maldives Islamic Bank Plc.
The corridor currently supports permitted person-to-person transfers, including family-maintenance remittances and eligible gift remittances. The initiative is expected to benefit Maldivian residents with family members, students or other financial commitments in India by reducing the time required for cross-border transfers.
The project was implemented through cooperation among the Maldives Monetary Authority, the Reserve Bank of India, NPCI International Payments Limited, participating banks and other stakeholders. The launch follows efforts by both countries to expand digital-payment integration and improve the efficiency of cross-border financial services.
Officials said the payment corridor would be expanded in phases. Future services are expected to include QR code-based merchant payments and additional digital-payment facilities, which could support tourism, business transactions and travel between the two neighbouring countries.
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UPI expands into Maldives
India’s UPI launch in the Maldives broadens the international reach of its digital ecosystem, highlighting strengthening bilateral cooperation in financial technology, digital infrastructure, and broader economic development between the two nations.