New Delhi, July 31: India and the Maldives have operationalised a real-time cross-border digital payment corridor by integrating the Maldives’ instant payment system, Favara, with India’s Unified Payments Interface (UPI), marking a significant milestone in financial connectivity and bilateral economic cooperation between the two countries.
The new service, which went live on July 30, allows individuals in the Maldives to transfer money instantly to beneficiaries holding UPI-enabled bank accounts in India. Transactions can be initiated in Maldivian Rufiyaa (MVR) or US Dollars (USD) and are automatically settled in Indian Rupees (INR).
The initiative has been launched through collaboration between the Maldives Monetary Authority (MMA), the Reserve Bank of India (RBI), NPCI International Payments Limited (NIPL) and participating financial institutions in both countries. The rollout marks a major step towards strengthening digital financial integration and facilitating faster, safer and more affordable cross-border remittances.
In its initial phase, the facility is available to customers of Bank of Maldives Plc and Maldives Islamic Bank Plc, who can make person-to-person (P2P) transfers using their existing mobile banking applications without requiring any additional payment platform. A monthly transfer limit of up to ₹24,000 per customer has been prescribed, subject to bank-specific limits.
At present, the payment corridor supports family-maintenance remittances and eligible gift transfers under the Maldives’ foreign remittance regulations. In subsequent phases, the system is expected to be expanded to include QR code-based merchant payments (P2M) and eventually enable seamless digital transactions for tourists and businesses travelling between the two countries.
The launch follows an agreement signed in 2025 to connect the Maldives’ national payment infrastructure with India’s globally expanding UPI ecosystem.
The development is expected to benefit Indian expatriates, students, tourists and businesses with financial links to the Maldives. For the Andaman and Nicobar Islands, which share close maritime proximity with the Maldives and are increasingly viewed as part of India’s strategic Indian Ocean neighbourhood, enhanced digital payment connectivity is expected to support future tourism, trade and regional economic integration. While the current facility supports transfers from the Maldives to India, two-way payment functionality is planned in future phases.
With the Maldives joining the network, India’s UPI continues to expand its international footprint, reinforcing the country’s position as a global leader in digital public infrastructure and cross-border payment innovation.
