Malé, Maldives In a major milestone for cross-border digital payments and bilateral financial cooperation, the Maldives Monetary Authority (MMA) has officially announced the successful integration of the Maldives Instant Payment System (Favara) with India’s Unified Payments Interface (UPI).
The integration, announced on July 30, 2026, enables real-time cross-border fund transfers between the Maldives and India, marking a significant advancement in digital financial connectivity between the two neighboring countries.
The initiative reflects the growing strategic partnership between the Maldives and India, while making cross-border remittances faster, more secure, and more convenient for individuals.
Real-Time Money Transfers Now Available
With the launch of the Favara-UPI payment corridor, individuals in the Maldives can now send money instantly to beneficiaries in India using the Favara platform.
Under the new system:
- Transactions are initiated in Maldivian Rufiyaa (MVR).
- Funds are transferred in real time.
- Beneficiaries in India receive the money directly in Indian Rupees (INR) through UPI-enabled bank accounts.
The seamless integration significantly reduces the time and complexity traditionally associated with international remittances.
Initial Rollout Covers Two Major Maldivian Banks
The service has been launched in its first phase with the participation of two leading financial institutions in the Maldives:
- Bank of Maldives Plc
- Maldives Islamic Bank Plc
Customers of these banks can initiate Person-to-Person (P2P) transfers directly through their mobile banking applications using the Favara payment system to send funds to any UPI-enabled bank account in India.
The move is expected to benefit thousands of individuals, including families, students, professionals, and businesses with financial connections between the two countries.
Approved Remittance Categories
During the initial phase, the cross-border payment corridor supports several approved remittance purposes, including:
- Family maintenance remittances
- Foreign inward remittances
- Foreign outward remittances
- Gift-related remittances permitted under existing foreign exchange regulations
The service has been designed to comply with the regulatory frameworks of both countries.
Result of Strong India–Maldives Collaboration
The successful implementation is the outcome of close collaboration among several key institutions, including:
- Maldives Monetary Authority (MMA)
- Reserve Bank of India (RBI)
- NPCI International Payments Limited (NIPL)
- Participating banks
- Financial technology partners and other stakeholders in both countries
The initiative demonstrates the commitment of both governments and financial institutions to expanding digital payment infrastructure and improving cross-border financial services.
Agreement Signed in 2025
The foundation for the project was laid in July 2025, when NPCI International Payments Limited (NIPL) and the Maldives Monetary Authority signed an agreement to integrate Favara with UPI.
Following the agreement, the payment corridor achieved full operational readiness after an accelerated 10-day process involving:
- System testing
- Certification
- Bank onboarding
- Live transaction validation
The rapid implementation highlights the efficiency and technical capabilities of both payment ecosystems.
Future Expansion Planned
Authorities have confirmed that the current Person-to-Person (P2P) transfer service is only the first phase of the collaboration.
Upcoming phases are expected to introduce several new cross-border payment features, including:
- QR code-based merchant payments
- Retail merchant acceptance
- Additional digital payment services
- Expanded cross-border payment use cases for consumers and businesses
These enhancements are expected to deepen economic integration and facilitate tourism, trade, and business transactions between the Maldives and India.
Strengthening Digital Financial Connectivity
The integration represents another milestone in India’s efforts to expand the international reach of UPI, one of the world’s fastest-growing digital payment platforms.
By connecting Favara with UPI, both countries are creating a more efficient payment ecosystem that supports:
- Instant international remittances
- Financial inclusion
- Digital transformation
- Tourism and trade
- Regional economic cooperation
The initiative is also expected to reduce reliance on traditional cross-border payment channels, making transactions faster and more cost-effective.
Key Highlights
- Maldives’ Favara Instant Payment System has been successfully integrated with India’s UPI.
- The new corridor enables real-time cross-border fund transfers from the Maldives to India.
- Transactions are initiated in Maldivian Rufiyaa (MVR) and credited in Indian Rupees (INR).
- The service has launched with Bank of Maldives Plc and Maldives Islamic Bank Plc.
- Customers can make Person-to-Person (P2P) transfers directly through mobile banking applications.
- The initiative is the result of collaboration between the MMA, Reserve Bank of India (RBI), NPCI International Payments Limited (NIPL), and participating banks.
- Future phases will introduce QR-based merchant payments and additional cross-border digital payment services.
- The project strengthens India–Maldives economic cooperation and advances cross-border digital financial connectivity.
The launch of the Favara-UPI Cross-Border Payment Corridor marks a landmark achievement in digital finance, reinforcing the growing partnership between India and the Maldives. By enabling secure, instant, and convenient international payments, the initiative is set to transform cross-border remittances while laying the foundation for broader digital payment innovations in the future.
