The Maldives has launched real-time cross-border fund transfers to India through the integration of its instant payment system, Favara, with India’s Unified Payments Interface (UPI). The Maldives Monetary Authority announced the successful rollout of the service yesterday, describing it as a major step in strengthening digital financial connectivity and economic cooperation between the two countries. The Finance Ministry said that under the new facility, individuals in the Maldives can transfer money in real time to beneficiaries in India.
It added that transactions are initiated in Maldivian Rufiyaa and are credited directly in Indian Rupees to UPI-enabled bank accounts. In the initial phase, the service is available to customers of Bank of Maldives Plc and Maldives Islamic Bank Plc. Users can make person-to-person transfers through their mobile banking applications using the Favara payment platform.
The Ministry said that permitted remittance categories include family-maintenance-related remittances under both Foreign Inward and Foreign Outward Remittance, as well as gift-related remittances permitted under Foreign Outward Remittance.
The Ministry said that the implementation reflects close collaboration between the MMA, the Reserve Bank of India (RBI), NPCI International Payments Limited (NIPL), participating financial institutions, and other stakeholders in both countries.
