Maldives signs pact with India to develop digital payment system
The MoU outlines several key objectives, including the development of advanced digital payment systems across the Maldives.
The Ministry of Economic Development and Trade of the Maldives on Friday signed a Memorandum of Understanding (MoU) with NPCI International Payments Limited (NIPL), the international arm of the National Payments Corporation of India (NPCI), to develop a digital payment system.
The agreement, which was formalised during the ongoing visit of Indian External Affairs Minister Dr S Jaishankar to the Maldives, aims to strengthen the digital economy in the Maldives by advancing digital payment systems and promoting financial inclusion.
The MoU outlines several key objectives, including the development of advanced digital payment systems across the Maldives. This initiative seeks to facilitate seamless and secure transactions, thereby supporting the broader economic goals set out in President Mohamed Muizzu's manifesto. The ministry emphasised that the implementation of these technologies will play a crucial role in enhancing the efficiency of the nation's financial ecosystem.
One of the primary goals of the partnership is to improve financial inclusion by expanding access to financial services for underserved populations. The Ministry highlighted that this would promote broader economic participation and contribute to overall economic growth.
"Enhancing access to financial services for underserved populations is a key focus of this MoU," the ministry stated.
Another critical component of the agreement is ensuring interoperability between domestic and international payment networks. This will enable smooth cross-border transactions, supporting the Maldives' integration into the global digital economy. The ministry noted that interoperability is essential for maintaining compatibility with international standards and ensuring that Maldivians can engage in global commerce with ease.
The MoU also includes provisions for capacity building within local financial institutions. NIPL will provide training and support to these institutions to help them effectively utilise and manage the new digital payment systems. This aspect of the agreement is aimed at ensuring that local institutions are well-equipped to handle the technological advancements that will be introduced under this partnership.
