The Maldives Monetary Authority (MMA) has signed an agreement with NPCI International Payments Limited (NIPL) to connect Favara, the Maldives’ national instant payment system, with India’s Unified Payments Interface (UPI). The move marks a significant step in enhancing the digital financial infrastructure between the two countries.
Set to launch in early 2026, the first phase of this integration will allow individuals in both countries to send and receive money instantly, securely, and at lower cost. Initially focused on person-to-person transfers, the system will later expand to enable QR-based digital payments for merchants, supporting local businesses and facilitating cashless transactions in local currencies.
The partnership forms part of the MMA’s broader three-year Strategic Plan aimed at improving international digital payment solutions and promoting financial inclusion. The integration is expected to reduce the friction and cost associated with cross-border transactions, helping individuals and businesses participate more fully in the digital economy.
NIPL has already deployed similar services in countries such as Singapore, Sri Lanka, and Nepal. Its experience is expected to help establish a robust and secure payment bridge between the Maldives and India.
To support these developments, the MMA is also working on creating Payment Maldives, a new national entity that will lead payment innovations and coordinate the execution of strategic reforms. This initiative places the Maldives among a growing list of countries such as Jordan, Canada, and Thailand that are actively pursuing financial innovation through dedicated national frameworks.
Additionally, the MMA is developing a National QR code standard to unify digital payment experiences across banks and service providers. Once implemented, it will help streamline payment processes, encourage the use of Favara, and enable broader access to affordable cross-border transactions.
Together, these efforts represent a substantial upgrade to the country’s financial ecosystem, aimed at making digital payments more efficient, inclusive, and resilient in the years ahead.
