A bill has been proposed to establish a national payment switch in the Maldives to strengthen the country’s financial infrastructure.
The National Payment System Act Amendment Bill, submitted by the Member of Parliament Mohamed Shahid, will give the central bank, Maldives Monetary Authority (MMA), the power to designate a system within the national payment system as the National Payment Switch.
According to Shahid, the amendment will allow banks and payment service providers to be connected through one network, allowing customers to use one bank’s cards or digital wallets to make payments through another bank’s QR codes or payment terminals. This is expected to reduce transaction fees by routing payments through a central, domestic system. The switch would improve national security and economic independence by allowing domestic transactions to be processed through an established system within the Maldives, he said.
Members of Parliament broadly supported the amendment, stating that it would strengthen the country’s payment system, financial infrastructure, governance and oversight.
The bill was accepted unanimously by the members after debate.