IBNS-CMEDIA: The Maldives Monetary Authority (MMA) on July 30 announced the successful launch of the integration between the Maldives’ instant payment system, Favara, and India’s Unified Payments Interface (UPI).
The integration marks a major milestone in cross-border digital financial connectivity and bilateral economic cooperation between the Maldives and India.
Key Features
Real-Time Transfers:
The new service enables individuals in the Maldives to send money to beneficiaries in India in real time. Transactions are initiated in Maldivian Rufiyaa (MVR) and are instantly credited to recipients’ bank accounts in Indian Rupees (INR) through UPI.
Initial Rollout:
The service has been launched with the participation of two local banks—Bank of Maldives Plc and Maldives Islamic Bank Plc. Customers of these banks can make person-to-person (P2P) transfers directly to UPI-enabled bank accounts in India using their mobile banking applications via the Favara payment network.
Permitted Remittance Categories:
The service currently supports family-maintenance remittances under both Foreign Inward Remittance and Foreign Outward Remittance categories, as well as gift-related remittances permitted under the Foreign Outward Remittance framework.
Joint Collaboration:
The implementation is the result of close collaboration between the Maldives Monetary Authority (MMA), the Reserve Bank of India (RBI), NPCI International Payments Limited (NIPL), participating financial institutions, and other stakeholders in both countries.
The agreement for the Favara-UPI integration was signed between NIPL and the MMA in July 2025. Following an accelerated 10-day programme covering testing, certification, onboarding, and live validation, the payment corridor achieved full operational readiness.
In subsequent phases, the partnership will introduce additional cross-border payment services, including QR code-based merchant payments and other innovative digital payment solutions, further strengthening economic and financial ties between India and the Maldives.
Countries Where UPI Is Accepted
With the Maldives integration enabling cross-border remittances, UPI is currently accepted for payments in nine countries, allowing Indian travellers to make seamless digital payments abroad:
Cambodia
Singapore
United Arab Emirates
France
Mauritius
Nepal
Bhutan
Qatar
Sri Lanka
