This integration will enable individuals in both countries to send and receive money instantly, safely and at lower costs, making cross-border transactions between the Maldives and India faster and easier.
The Maldives Journal
On 25 July 2025, the Maldives Monetary Authority (MMA) signed an agreement with NPCI International Payments Limited (NIPL), in a move to create a more efficient, secure and resilient financial ecosystem in the Maldives.
According to MMA, the agreement will connect the Maldives National Instant Payment System – Favara with India’s Unified Payments Interface (UPI). This integration will enable individuals in both countries to send and receive money instantly, safely and at lower costs, making cross-border transactions between the Maldives and India faster and easier.
The development is part of MMA’s three-year Strategic Plan to boost digital payment solutions for international transactions. Making cross-border payments seamless and reliable is a necessity for a resilient financial ecosystem, financial inclusion, equitable access to financial services, and broader economic participation and growth.
MMA also noted that this partnership will allow individuals in both countries to send and receive money instantly, conveniently, securely, and cost-effectively. The first phase of this project, expected to be launched in early 2026, will enable individuals to send money directly to friends and family. Later, the system will expand to allow merchants to accept digital payments through QR codes, helping small businesses and individuals to accept cashless payments using their respective local currencies.
NIPL has successfully introduced similar services in countries such as Singapore, Sri Lanka and Nepal, demonstrating their expertise in digital payments. With legislative reforms currently underway, the MMA is set to establish a dedicated entity - Payment Maldives - which will serve as the national vehicle for pioneering payment innovation and ensuring focused execution of strategic payment reforms. This step aligns the Maldives with countries like Jordan, Canada, India, Saudi Arabia, and Thailand, which have led the way in financial innovation.
To further enhance the digital payment ecosystem, MMA is also progressing on the development of a National QR code standard, a key pillar of its broader digital transformation. This initiative will harmonise QR code formats across banks and payment service providers, laying the groundwork for innovative and user-friendly digital payment experiences.
Once implemented, it will not only accelerate Favara’s adoption but also facilitate accessible and low-cost cross-border transactions, empowering individuals and businesses to transact more efficiently, supporting MMA’s goals of financial inclusion and reduced reliance on cash.
