The Maldives and India are advancing cooperation in digital payments and financial connectivity, with the governors of the two countries’ central banks holding discussions in New Delhi on key initiatives aimed at strengthening financial ties and facilitating easier cross-border transactions.
Governor of the Maldives Monetary Authority (MMA) Ahmed Munawar met Governor of the Reserve Bank of India (RBI) Sanjay Malhotra on 19 October 2026 on the sidelines of Samvad 2026, an international central banking seminar organised by the RBI in Delhi.
During the meeting, Governor Munawar expressed appreciation to the RBI for approving the first rollover of the INR 30 billion currency swap facility. The arrangement provides important financial support for liquidity management and contributes to strengthening financial stability between the two neighbouring countries.
A key focus of the discussions was the planned integration of India’s Unified Payments Interface (UPI) with the Maldives’ Favara payment system. Governor Munawar provided an update on ongoing work to establish a Person-to-Merchant payment connection between the two platforms, with the service scheduled to be launched during the first half of 2027.
The integration is expected to make payments significantly more convenient for Indian visitors travelling to the Maldives while also creating new opportunities for Maldivian businesses serving the tourism sector. India remains an important regional market for the Maldives, and a seamless digital payment connection could allow visitors to make payments more efficiently while reducing friction associated with cross-border transactions.
For Maldivian merchants, tourism businesses and service providers, the payment link is also expected to provide a more efficient channel for receiving payments from Indian customers. Beyond tourism, the initiative could support wider commercial activity and facilitate bilateral trade by improving the speed, convenience and accessibility of payments between the Maldives and India.
Favara forms an important part of the Maldives’ expanding digital financial infrastructure, enabling instant transfers between participating financial institutions. Connecting the national payment network with UPI would further strengthen the Government’s broader efforts to modernise the country’s financial sector, improve payment accessibility and expand the Maldives’ integration with regional digital payment networks.
The two governors also discussed further opportunities to strengthen institutional cooperation between the MMA and RBI, reflecting the growing financial and economic engagement between the Maldives and India.
Governor Munawar was accompanied during the official visit by Mariyam Rashfa, Managing Director for Monetary Policy, Economics and Statistics at the MMA, and Abdulla Nasif, Deputy Manager of the MMA’s Licensing Section.
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