Friday
31st Jul 2026
Dhivehi Edition
Photo: MMA
The Maldives Monetary Authority (MMA) has launched a new cross-border payment service that connects the Maldives' national payment system, FAVARA, with India's Unified Payments Interface (UPI), enabling customers to transfer money instantly from Maldivian bank accounts to bank accounts in India.
The service was officially inaugurated during a special ceremony held at the MMA on Thursday. It has been introduced in collaboration with the Bank of Maldives (BML) and the Maldives Islamic Bank (MIB).
According to the MMA, customers of the two banks can now send money directly to UPI-enabled bank accounts in India through their existing mobile banking apps or internet banking platforms, without needing to download or use any additional applications.
Under the new system, transfers can be made in either Maldivian Rufiyaa or US dollars, with the funds credited instantly to the recipient's Indian bank account in Indian Rupees. The MMA said the process is designed to be as simple and secure as making a domestic bank transfer within the Maldives.
The service is currently being introduced in phases. At present, it supports only person-to-person (P2P) transfers between individuals. The MMA said work is already underway on the next phase, which will introduce person-to-merchant (P2M) payments through QR codes, allowing customers to make payments directly to businesses in India.
For now, the service only supports transfers from the Maldives to India. The MMA said testing is planned for a future phase that will enable transfers from India to the Maldives.
In line with the Maldives' foreign exchange regulations, customers can send a maximum of INR 24,000 (approximately USD 250) per month through the service. Banks also have the discretion to impose lower limits if necessary.
Before confirming a transfer, the recipient's account details are verified through the UPI network. Customers are also shown the applicable exchange rate, any bank charges, and the recipient's name before completing the transaction.
The service is the result of an agreement signed on July 24, 2025, between the MMA and NPCI International Payments Limited (NIPL), the international arm of the National Payments Corporation of India. The project has been implemented through collaboration between the MMA, Payments Maldives, the Reserve Bank of India, NIPL, and other relevant financial institutions from both countries.
The MMA noted that UPI is currently the world's largest digital payment system. Platforms such as Google Pay, PhonePe, and Paytm operate on the UPI network. According to the authority, the platform processed approximately 241.6 billion transactions over the past year, with a total transaction value of around US$3.56 trillion.