Favara to link with India’s UPI by July, says MMA governor

The Maldives’ multi-bank payment system, Favara, will be connected to India’s Unified Payments Interface (UPI) by July next year, Governor of the Maldives Monetary Authority Ahmed Munawwar said on Monday.

Munawwar made the announcement while speaking at the launch of a financial sector development initiative organised by the central bank at Barceló Nasandhura Malé. He said the MMA aims to develop a financial system that improves access and efficiency for users across the Maldives.

The MMA said discussions on integrating Favara with India’s UPI began in June. Munawwar said the work is expected to be completed by mid-next year.

“The first cross-border integration of Favara is now close to completion. By July next year, Favara will be integrated with India’s UPI,” he said.

The integration is expected to enable instant remittances to India and support faster cross-border transactions through digital platforms.

Favara currently allows customers to transfer funds between banks in the Maldives using a single system, regardless of the bank they hold accounts with.

An agreement was signed with an Indian UPI service provider in August 2024 to support the development of digital payments in the Maldives. In October last year, President Mohamed Muizzu approved steps at a Cabinet meeting to introduce UPI connectivity in the country.