Maldives connects Favara to India's UPI payment network

The Maldives Monetary Authority (MMA) has launched a cross-border payment service linking the Maldives' instant payment system, Favara, with India's Unified Payments Interface (UPI), allowing customers to transfer money to India within seconds.

The service was launched on Thursday by MMA Governor Ahmed Munawar at a ceremony held at the central bank.

The initiative follows an agreement signed on 24 July 2025 between the MMA and NPCI International Payments Limited (NIPL), the international subsidiary of the National Payments Corporation of India.

According to the MMA, the launch marks the first time the Maldives' national payment infrastructure has been connected to an international payment network.

The service is initially available to customers of the Bank of Maldives (BML) and Maldives Islamic Bank (MIB). Customers of the two banks can send funds directly to UPI-linked bank accounts in India through their existing mobile banking applications or internet banking platforms without installing additional applications.

Under the service, customers can make payments in Maldivian Rufiyaa or US dollars, with the funds credited instantly to the recipient's bank account in India in Indian Rupees.

The payment service has been developed through collaboration between the MMA, Payment Maldives, the Reserve Bank of India, NIPL and financial institutions in both countries.

According to the MMA, the rollout will take place in phases.

The first phase enables person-to-person transfers between individuals. A second phase, currently under discussion, will introduce person-to-merchant payments using QR codes for business transactions.

At present, the service supports transfers from the Maldives to India only. The MMA said testing for transfers from India to the Maldives is expected to begin in the coming days.

Transfers are subject to the Maldives' foreign exchange regulations and are limited to approved purposes, including education expenses, medical treatment costs for Maldivians holding long-term medical visas, and family support.

The maximum transfer limit is 24,000 Indian Rupees, or about US$250, per customer each month. Participating banks may apply lower monthly limits at their discretion.

The MMA said future phases of the project will introduce QR code payments for merchants and additional digital payment services to strengthen financial connectivity between the Maldives and India.

With the launch, the Maldives becomes one of the few countries to establish a direct connection with India's UPI payment system.