New Delhi, July 31, 2026 (Yes Punjab News)
The Maldives and India have launched a real-time cross-border payment service linking the Maldives’ Instant Payment System, Favara, with India’s Unified Payments Interface (UPI), enabling seamless fund transfers between the two countries.
According to a statement issued by the Ministry of Finance on Friday, the service became operational on July 30 and allows individuals in the Maldives to send money directly to UPI-enabled bank accounts in India. Transactions are initiated in Maldivian Rufiyaa (MVR) and credited to beneficiaries in Indian Rupees (INR) in real time.
Describing the launch as a significant step in bilateral financial cooperation, the statement said the integration marks a major milestone in enhancing cross-border digital payment connectivity between the two countries.
The facility has initially been rolled out through Bank of Maldives Plc and Maldives Islamic Bank Plc. Customers of both banks can make person-to-person (P2P) transfers to India using their mobile banking applications through the Favara payment platform.
The permitted remittance categories include family maintenance transfers under inward and outward remittance provisions, as well as eligible gift-related outward remittances.
The integration is the result of collaboration between the Maldives Monetary Authority (MMA), the Reserve Bank of India (RBI), NPCI International Payments Limited (NIPL), participating banks and other stakeholders.
The agreement to integrate Favara with UPI was signed between the MMA and NIPL in July 2025. Following testing, certification and system validation, the payment corridor has now become fully operational.
The two countries also plan to introduce additional cross-border payment services in the next phase, including QR code-based merchant payments and other digital payment solutions.
With the Maldives joining the network, UPI is now operational in several countries, including Singapore, the UAE, France, Mauritius, Nepal, Bhutan, Sri Lanka, Qatar and Cambodia.
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