The Maldives and India are advancing cooperation on cross-border digital payments, with discussions focusing on the integration of the Maldives’ FAVARA payment system with India’s Unified Payments Interface (UPI) and the planned introduction of person-to-merchant payments.
Governor of the Maldives Monetary Authority (MMA), Ahmed Munawar, met with Reserve Bank of India (RBI) Governor Sanjay Malhotra in New Delhi on 19 October 2026, on the sidelines of Samvad 2026, an international seminar for central banks organised by the RBI.
During the meeting, Governor Munawar provided an update on the progress of the UPI–FAVARA integration and discussed further technical and institutional cooperation required for the person-to-merchant, or P2M, payment connection. The P2M service is scheduled to be launched during the first half of 2027 and is expected to provide a more convenient payment experience for visitors while supporting stronger commercial links between the two countries.
Once introduced, the connection is expected to make everyday transactions easier for Indian tourists visiting the Maldives by enabling greater use of familiar digital payment channels at participating merchants. The development is particularly significant for the Maldives’ tourism-driven economy, where efficient, secure and convenient payment services can improve the visitor experience across resorts, guesthouses, restaurants, retail outlets, transport services and other tourism-related businesses.
For resorts, the planned payment integration could provide an additional digital payment option for a major source market, supporting smoother transactions for accommodation, dining, excursions, spa services, retail purchases and other resort-based services. Greater interoperability between payment systems could also help businesses streamline transactions while contributing to the Government’s wider efforts to strengthen the country’s digital financial infrastructure and improve the ease of doing business.
Governor Munawar also expressed appreciation to the RBI for approving the first rollover of the INR 30 billion currency swap facility, which continues to support financial cooperation between the Maldives and India. The two governors further discussed opportunities to deepen collaboration between the MMA and RBI in areas of mutual interest.
The discussions reflect the Maldives Government’s continued emphasis on strengthening financial connectivity, modernising payment systems and expanding practical economic cooperation with international partners. Closer integration between FAVARA and UPI is expected to support tourism, trade and financial inclusion while creating a more connected payment environment for businesses and consumers.
Governor Munawar was accompanied at the meeting by Mariyam Rashfa, Managing Director of Monetary Policy, Economics and Statistics at the MMA, and Abdulla Nasif, Deputy Manager of the Licensing Section.
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