Maldives in talks to link India’s UPI with Favara system
The Cabinet, during a meeting held in October 2024, decided to take the necessary steps to introduce UPI-based payment infrastructure in the Maldives.
The Maldives Monetary Authority (MMA) has initiated formal discussions through the Ministry of Economic Development and Trade to link India’s Unified Payments Interface (UPI) with the Maldives’ Favara system.
The move is part of ongoing efforts to enhance the country’s digital payment infrastructure and facilitate faster and more secure cross-border transactions.
In response to a letter by Maldivian Democratic Party (MDP) MP Mohamed Ibrahim, who raised questions regarding the absence of online payment access for Maldivian businesses operating in the Maldives, the MMA has issued a statement clarifying its initiatives in the digital payments space.
According to the MMA, the Favara service was introduced in 2023 to expand access to modern payment solutions in the Maldives. It enables customers to transfer funds from one bank to another within the country through a unified and secure platform.
The authority also stated that international connectivity is a key goal for Favara. As part of this initiative, formal discussions have commenced to link Favara with India’s UPI system, with the aim of enabling real-time remittances and streamlined cross-border online transactions.
A Memorandum of Understanding (MoU) was signed in August between the Maldives and India to support this development.
Further, the Cabinet, during a meeting held in October 2024, decided to take the necessary steps to introduce UPI-based payment infrastructure in the Maldives.
The MMA said that similar partnerships are being explored with other countries to expand the reach of Favara internationally.
