The integration of the Maldives' instant payment system, Favara, with India’s Unified Payments Interface (UPI) represents a significant milestone in strengthening bilateral economic ties and achieving the goals of the proposed India-Maldives Free Trade Agreement (FTA), according to Minister for Economic Development, Transport, and Trade, Mohamed Saeed.
In a message shared on social media, Minister Saeed highlighted that the project—spearheaded by the Maldives Monetary Authority (MMA)—is a crucial step forward in promoting digital and financial cooperation between the two neighbouring nations.
Describing UPI as one of the world's largest and most widely used real-time payment networks, the Minister noted that the link will make bilateral financial transactions faster, safer, and far more affordable than ever before.
"This achievement symbolises the vision of the leaders of both nations to enhance economic cooperation and strengthen bilateral relations through people-friendly initiatives," Minister Saeed said, referencing discussions held during recent high-level official visits.
He emphasised that the system will simplify personal remittances for citizens while creating new avenues for cross-border trade, tourism, and investment. Additionally, the planned expansion of the system to cover merchant and business-to-business (B2B) payments is set to reinforce economic ties, bolster the upcoming FTA, and unlock substantial opportunities for commercial communities in both countries, he added.
The cross-border payment service has initially been rolled out in partnership with the Bank of Maldives (BML) and the Maldives Islamic Bank (MIB). Under the initial phase, account holders at both banks can send funds directly to UPI accounts in India using their standard mobile banking apps or online banking portals, eliminating the need for third-party platforms. When a sender transfers funds in Maldivian Rufiyaa (MVR) or US Dollars (USD), the recipient's account in India is credited almost instantly in Indian Rupees (INR).