Efforts are underway to introduce QR-based payment services connecting the Maldives’ Favara instant payment system with India’s Unified Payments Interface, strengthening financial connectivity between the two countries and expanding convenient payment options for individuals and businesses.
Aishath Asna Hamdi, Deputy Governor of the Maldives Monetary Authority, said the initiative is being implemented as part of a bilateral project under which the central bank has interconnected Favara, the Maldives’ domestic instant payment system, with UPI. The integration currently enables fast and secure outward monetary transfers from the Maldives to India.
The cross-border transfer service is presently available through the Bank of Maldives and Maldives Islamic Bank. Regulatory authorities plan to broaden participation by enabling all commercial banks and licensed payment service providers operating in the Maldives to offer the service, supporting wider public access and greater competition within the country’s digital payments sector.
Technical work is also progressing on a QR-based merchant payment system that will allow Maldivians and Indians to make direct payments to businesses using their respective domestic mobile applications. Once introduced, the service is expected to simplify transactions for merchants and customers by reducing dependence on conventional payment methods and offering a faster and more accessible digital alternative.
The planned QR payment facility could provide significant benefits to businesses across the Maldives, including resorts, guesthouses, restaurants, retail outlets and other tourism-related establishments. Indian travellers would be able to use familiar payment applications when purchasing goods and services, while Maldivian businesses could receive payments through the domestic financial system. This would enhance the visitor experience, improve payment convenience and support the Government’s efforts to strengthen the Maldives as a digitally connected and internationally accessible destination.
Deputy Governor Asna said the partnership would be expanded to include QR-based merchant payments so that citizens of both countries could pay businesses directly through their native applications. She described the current stage as the beginning of a broader programme of financial innovation aimed at strengthening Favara’s cross-border capabilities and making the process of sending and receiving money more convenient, affordable and dignified.
Cross-border transactions are currently limited to outward remittances from the Maldives to India, while the technical and regulatory development required to introduce inward transfers remains in progress. The proposed multi-currency framework will enable customers to conduct transfers through Maldivian Rufiyaa, US dollar and Indian Rupee accounts, providing greater flexibility for users with different banking requirements.
Under the current transfer limits, an individual customer may remit up to INR 24,000, or the equivalent of USD 250, each month. The transaction framework is designed to support smaller personal remittances while maintaining appropriate regulatory oversight and financial safeguards.
The integration of Favara and UPI reflects the Maldives’ continued progress in modernising its national payment infrastructure and strengthening economic cooperation with India. The Government’s support for secure digital payment solutions is expected to improve financial inclusion, facilitate cross-border commerce and create a more efficient payment environment for residents, visitors and businesses across the country.
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