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NPCI International Payments Ltd (NIPL) and the Maldives Monetary Authority (MMA) have announced the successful launch of an integration between the Maldives' Favara instant payment system and India's Unified Payments Interface (UPI). Following the launch on Thursday, individuals in the Maldives can transfer funds in real time to UPI-enabled bank accounts in India. The service has begun with two participating banks, Bank of Maldives Plc and Maldives Islamic Bank Plc. Subsequent phases will introduce QR-based merchant payments and other cross-border digital payment services between the two countries.
NPCI International Payments Ltd (NIPL) and the Maldives Monetary Authority (MMA) announced on Friday the successful go-live of an integration between the Maldives' Instant Payment System, Favara, and India's Unified Payments Interface (UPI), enabling real-time cross-border fund transfers between individuals in the Maldives and UPI-enabled bank accounts in India.
The finance ministry, in a statement, described the development as a milestone in cross-border digital financial connectivity and bilateral economic cooperation between India and the Maldives. Following the launch of the service on Thursday, individuals in the Maldives can now transfer funds in real time to UPI-enabled bank accounts in India through their mobile banking applications.
The service has commenced with the participation of two local banks in the Maldives, Bank of Maldives Plc and Maldives Islamic Bank Plc. Customers of these banks can initiate person-to-person transfers directly to UPI-enabled bank accounts in India using their mobile banking applications, routed through the Favara payment rail.
The finance ministry said the implementation reflected close collaboration between the MMA, the Reserve Bank of India, NIPL, and participating financial institutions and other stakeholders in both countries. It added that subsequent phases of the collaboration would introduce additional cross-border payment use cases, including QR-based merchant payments and other digital payment services, aimed at further strengthening economic and financial ties between the two countries.
UPI is currently accepted in nine countries, namely Cambodia, Singapore, the United Arab Emirates, France, Mauritius, Nepal, Bhutan, Qatar and Sri Lanka, enabling Indian travellers to make payments abroad using the platform. The Maldives integration extends this cross-border acceptance framework by enabling inbound transfers from the Maldives into UPI-enabled accounts in India, rather than solely supporting outbound payments by Indian users abroad.
NPCI, an initiative of the Reserve Bank of India and the Indian Banks' Association, functions as the umbrella organisation operating retail payments and settlement systems in India. It runs the UPI platform, which facilitates real-time payments between individuals and at merchant establishments for purchases.
The statement did not specify a timeline for the rollout of subsequent phases, including the introduction of QR-based merchant payments, nor did it provide details on the expected transaction volumes or value anticipated through the new Favara-UPI corridor.
Source: PTI
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