The Maldives Monetary Authority has announced the successful launch of the integration between the Maldives Instant Payment System, Favara, and India’s Unified Payments Interface, enabling real-time cross-border fund transfers between the Maldives and India.
The integration represents the first international connection established through Favara, extending the national instant payment system beyond domestic transactions and expanding the Maldives’ digital financial infrastructure into cross-border payment services. The development is expected to provide individuals and families with a faster, more convenient and efficient channel for transferring funds between the two countries.
Under the newly introduced service, individuals in the Maldives can initiate transfers through Favara in Maldivian Rufiyaa, with the funds credited to beneficiaries in India in Indian Rupees through UPI. Transactions are processed in real time, offering customers a streamlined alternative for sending money directly to UPI-enabled bank accounts in India.
During the initial phase, the service supports person-to-person transfers, allowing customers in the Maldives to send funds directly to individuals in India. Bank of Maldives and Maldives Islamic Bank are the first local financial institutions participating in the service. Customers of both banks can access the facility through their respective digital banking platforms and initiate transfers using the Favara payment network.
The introduction of the service is particularly beneficial for individuals and families with financial commitments across the Maldives and India. By connecting two advanced instant payment systems, the initiative is expected to reduce the time and complexity traditionally associated with international transfers while improving accessibility and convenience for customers.
The next phase of the collaboration is scheduled to expand the service to person-to-merchant payments, enabling customers in the Maldives to make payments directly to businesses in India. This expansion is expected to be introduced during the coming year and will further enhance the practical use of the cross-border payment connection.
Future developments will also include QR-based merchant payments and other innovative digital financial services. These services are expected to support travellers, consumers and businesses by providing efficient payment options while strengthening economic activity and financial connectivity between the two countries.
The successful implementation reflects close coordination among the Maldives Monetary Authority, the Reserve Bank of India, NPCI International Payments Limited, participating financial institutions and other stakeholders in both countries. Their collaboration has established the technical and institutional framework required to facilitate secure and efficient real-time transactions across the two national payment networks.
The initiative also demonstrates the Government of Maldives’ continued commitment to modernising the country’s financial sector, strengthening digital public infrastructure and expanding access to reliable financial services. The Government’s support and guidance have contributed to creating an enabling environment for the Maldives to adopt internationally connected payment solutions that benefit individuals, families and businesses.
The Maldives Monetary Authority expressed its appreciation to the Government of the Republic of Maldives and the Government of the Republic of India for their continued support in delivering the initiative. The Favara–UPI integration is expected to further strengthen the longstanding economic and financial relationship between the Maldives and India while supporting the development of a more connected, inclusive and digitally enabled financial ecosystem.
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