The Maldives (Commonwealth Union)_ India and the Maldives have taken yet another giant leap in strengthening their financial partnership with the introduction of a new cross-border payment service linking the Maldives’ Favara instant payment system with India’s Unified Payments Interface (UPI). The initiative underscores how the two Commonwealth nations are working together to ensure that digital money transfers are faster, safer and more convenient for people with financial linkages between the two countries. The new Favara-UPI service was officially launched this month. It allows people in the Maldives to send money instantly to bank accounts in India linked to UPI. Customers can make transfers in Maldivian Rufiyaa (MVR) and recipients will receive the funds directly in Indian Rupees (INR), ensuring a seamless process.
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The service is currently available to customers of Bank of Maldives Plc and Maldives Islamic Bank Plc, the first financial institutions to offer the facility. Instead of relying on traditional remittance methods, users can now transfer money through their existing mobile banking applications using the Favara payment network. This is expected to reduce transfer times, improve convenience and lower transaction costs. At present, the service is designed mainly for family maintenance remittances and approved gift transfers under the Maldives’ foreign remittance regulations. These transactions are common among families, students and individuals with personal or financial ties between India and the Maldives.
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Security and transparency are important features of the new payment system. The platform verifies the recipient’s bank account via the UPI network before the transfer is completed, reducing the chances of sending money to a wrong account. Customers can see the live exchange rate, applicable bank charges and the name of the person who receives money before confirming the transaction. These features build confidence and make cross-border payments more reliable. The launch follows close collaboration between the Maldives Monetary Authority, the Reserve Bank of India, NPCI International Payments Limited (NIPL), partner banks and different stakeholders from both countries. After signing the agreement in July 2025, the partners completed technical testing, certification and onboarding before successfully rolling out the service.
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The Favara-UPI link is the first step in a broader digital payments partnership. Future initiatives will include merchant payments based on QR codes, enabling tourists, businesses and consumers to make seamless payments in both countries using their preferred digital platforms. The latest integration also adds to UPI’s growing international footprint and underscores India and the Maldives’ common commitment to upgrading financial services. By joining hands on cross-border digital payments, the two neighboring Commonwealth countries are deepening economic ties, promoting financial inclusion and creating a faster, more integrated payment ecosystem that will benefit individuals, travelers and businesses alike.
