.svg)
The Maldives Monetary Authority has launched a direct link between the local "Favara" payment system and India’s UPI. The service allows BML and MIB customers to instantly transfer money from Rufiyaa or Dollar accounts to Indian bank accounts, with a monthly limit of INR 24,000 (approx. $250).
News Desk
Ceremony to Link Favara and UPI --- Photo: MMA
The Maldives Monetary Authority (MMA) has officially launched a direct payment link connecting the Maldives’ national instant payment platform, “Favara,” with India’s Unified Payments Interface (UPI).
Introduced during a special ceremony at the central bank, the service was rolled out in partnership with Bank of Maldives (BML) and Maldives Islamic Bank (MIB).
Through this integration, account holders at BML and MIB can make seamless transfers to UPI-enabled bank accounts in India using their existing mobile banking applications or internet banking platforms, eliminating the need to download separate third-party software.
Instant Foreign Currency Conversion: Users can initiate transfers in Maldivian Rufiyaa (MVR) or US Dollars (USD), which are converted and deposited directly into the recipient’s bank account in Indian Rupees (INR).
Pre-Transfer Verification: The system automatically verifies the recipient’s bank details via UPI prior to transfer, displaying the applicable exchange rate, bank fees, and recipient’s legal name for added security.
Monthly Transaction Limits: In compliance with foreign exchange regulations, individual customers can transfer up to INR 24,000 (approx. USD 250) per month. Banks retain the discretion to set lower individual limits if required.
Domestic Transfer Security: The central bank has structured the service to offer the same level of speed, ease, and security as standard domestic bank-to-bank transfers within the Maldives.
The initiative is being executed in phased stages to ensure financial security and platform stability:
Phase 1 (Person-to-Person): Currently limited exclusively to individual P2P transfers between private bank accounts.
Inbound Transfers: Testing is set to begin in the coming days to allow seamless remittance flows from India into Maldivian bank accounts.
Phase 2 (Merchant QR Payments): Discussions are underway to introduce Person-to-Merchant (P2M) payments, enabling tourists and businesses to execute retail transactions using QR code scanning.
The launch fulfills a bilateral agreement signed on July 24, 2024, between the MMA and NPCI International Payments Limited (NIPL)—the international arm of the National Payments Corporation of India. The initiative was developed through close collaboration among the MMA, Payment Maldives, the Reserve Bank of India (RBI), NIPL, and commercial banking partners.
UPI is recognized as one of the world’s largest digital transaction networks, powering daily payments across platforms like Google Pay, PhonePe, and Paytm. In recent years, the platform processed over 241.6 billion transactions valued at approximately USD 3.56 trillion.
