And now, in order to make the Favaraa system even better, MMA has now announced that they are updating the limit on the system.
Maldives Business Times
In 2023, the Maldives witnessed remarkable strides in technological advancements, particularly in the realm of finance. Embracing the global shift away from traditional forms of payment, our nation wholeheartedly embraced the transition towards more sophisticated modes of payment. This evolution saw a seamless integration of physical currency with the burgeoning realm of online transactions. Notably, our technological infrastructure now enables direct monetary transfers within our social circles and across domestic institutions, while also facilitating inter-bank and international transactions.
In the context of the Maldives, the emergence of diverse banking options posed a significant challenge as people began patronizing different institutions. While the Bank of Maldives (BML) had long been the preferred choice for many, the introduction of the Maldives Islamic Bank (MIB) attracted a substantial portion of the populace. However, this diversification of banking options inadvertently led to a pressing issue: the absence of a mechanism for inter-bank transfers. Recognizing the urgency to address this issue, the Maldives Monetary Authority (MMA) took decisive action in 2023 with the introduction of Favaraa. This innovative platform revolutionized financial transactions by enabling citizens to swiftly transfer funds of up to MVR 50,000 between various banks, thereby fostering greater financial inclusivity and convenience for all.
And now, in order to make the Favaraa system even better, MMA has now announced that they are updating the limit on the system. With these updated changes, customers can now make Favara transfers of up to MVR 200,000 at a time while and make Favara requests for up to MVR 10,000 at a time. Before this, the Favara request was limited at MVR 5,000.
By increasing the transfer limit to MVR 200,000 and the request limit to MVR 10,000, MMA has demonstrated its commitment to continually improving financial accessibility and convenience for citizens. These updated changes not only empower individuals to conduct larger transactions seamlessly but also reflect MMA's responsiveness to the evolving needs of the populace.
