Maldives and India launch real-time digital payment corridor

The Maldives and India have launched a new real-time digital payment corridor, Favara-UPI, enabling instant fund transfers between the two nations. The system, operational since July 30, 2026, allows individuals in the Maldives to send money in Maldivian Rufiyaa, which is converted and credited directly in Indian Rupees to recipients in India through India's Unified Payments Interface (UPI).

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The service has commenced with the participation of two local banks: Bank of Maldives Plc and Maldives Islamic Bank Plc.

The service began with two local banks in the Maldives: Bank of Maldives Plc and Maldives Islamic Bank Plc. Customers of these banks can now initiate person-to-person transfers to UPI-enabled accounts in India using their mobile banking applications. Permitted remittance categories include family maintenance and gifts.

This integration is the result of close collaboration between the Maldives Monetary Authority, the Reserve Bank of India, NPCI International Payments Limited, and participating financial institutions. The formal agreement was signed in July 2025, and operational readiness was achieved after a rapid testing and validation period.

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The implementation reflects close collaboration between the MMA, the Reserve Bank of India (RBI), NPCI International Payments Limited (NIPL), participating financial institutions, and other stakeholders in both countries.

Future phases of the collaboration plan to introduce additional services, such as QR-based merchant payments, further enhancing economic and financial ties. This deployment also extends India's digital payment network, which is already active in nine other countries.

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subsequent phases of the collaboration will introduce additional cross-border payment use cases, including QR-based merchant payments and other innovative digital payment services, further strengthening economic and financial ties between the Maldives and India.