The Maldives Monetary Authority (MMA) has signed a landmark agreement with NPCI International Payments Limited (NIPL) to integrate the Maldives’ national instant payment system, Favara, with India’s Unified Payments Interface (UPI). 

The collaboration will enable individuals in both countries to send and receive funds instantly, securely, and at a lower cost. It is expected to significantly ease cross-border transactions and support broader financial inclusion, aligning with the MMA’s three-year strategic plan to modernise the nation’s payment systems and promote economic resilience.

The first phase of the project is expected to launch in early 2026, allowing person-to-person money transfers. In subsequent phases, the integration will be expanded to support merchant payments via QR codes, enabling businesses to accept digital transactions in local currency. This will particularly benefit small businesses and individuals by encouraging cashless payments.

The initiative forms part of the reforms aimed at fostering financial innovation. The MMA is in the process of establishing Payment Maldives, a dedicated entity to spearhead payment modernisation and ensure focused execution of strategic reforms. This move brings the Maldives in line with international best practices seen in countries such as Canada, India, Saudi Arabia, and Thailand.

Additionally, the MMA is developing a national QR code standard to unify payment formats across banks and service providers. This will support the adoption of Favara and facilitate accessible, low-cost digital payments both domestically and internationally. India’s UPI platform has already been successfully implemented in countries such as Singapore, Sri Lanka, and Nepal.