The Maldives Monetary Authority (MMA) has signed the Participation Agreement with two more banks to to connect to Favara, the Maldives Instant Payment System (IPS).
MMA signed the agreement with Bank of Ceylon and Mauritius Commercial Bank to connect with Favara. The system offers innovative, convenient, and affordable access to digital financial services, enabling users to make and receive payments instantly.
MMA is set to commence pilot testing on November 8, following the successful completion of user acceptance testing with the banks. The testing phase is expected to conclude soon, with both banks in the final stages of preparation to join the system.
Favara is expected to revolutionise payment services in the country by enhancing the services of businesses and making them more accessible. The customisable design of the system promotes the execution and access of payment services across the country. The system will encourage economic growth by promoting fintech and e-commerce services, providing opportunities for entrepreneurs and youth, and significantly increasing national production.
Favara includes instant payment, request to pay, smart addressing, and account verification services. MMA stated that the payment system will allow citizens living on an island in the Maldives to open an account at any bank and instantly make transactions. The first phase of the instant payment system adoption prioritises enhancing internal financial transactions. The second phase will connect the system to the national payment systems of other countries to facilitate instant foreign currency transactions.