Maldives (Commonwealth Union)_ Maldives President Mohamed Muizzu is set to implement the Unified Payment Interface (UPI) in the country, following a recommendation from his Cabinet. This initiative comes after India offered to share its knowledge on digital and financial services, aiming to enhance the nation’s Digital Public Infrastructure (DPI). The Unified Payments Interface (UPI) is an instant payment system created by the National Payments Corporation of India (NPCI) in 2016. It allows for quick inter-bank transactions, both peer-to-peer (P2P) and person-to-merchant (P2M), using mobile devices. To transfer funds, users must have their mobile number registered with their bank and can use the recipient’s UPI ID for transactions.
President Muizzu’s decision is expected to greatly benefit the Maldivian economy. It will likely lead to greater financial inclusion, making it easier for people to access banking services. Additionally, it will improve the efficiency of financial transactions and strengthen the country’s digital infrastructure. The Cabinet discussed a report from the Minister of Economic Development and Trade before reaching this decision. To facilitate the UPI introduction, President Muizzu plans to create a consortium that will include banks, telecom companies, state-owned enterprises, and fintech firms in the Maldives.
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To lead this consortium, he appointed TradeNet Maldives Corporation Limited, a well-regarded agency with expertise in this area. Furthermore, an interagency team will be formed, involving the Ministry of Finance, the Ministry of Homeland Security and Technology, and the Maldives Monetary Authority. This team will work alongside the Ministry of Economic Development and Trade to oversee the UPI’s establishment. During President Muizzu’s recent state visit to India, India also launched RuPay cards in the Maldives. This move aims to make payments easier for Indian tourists visiting the islands and for Maldivians traveling to India, enhancing digital and financial ties between the two nations.
Earlier, President Muizzu expressed gratitude to the Indian government for providing support in the form of a $400 million loan and a currency swap agreement worth 30 billion Indian rupees. This assistance is crucial for the Maldives as it navigates current financial challenges. During his visit to India, both countries agreed on additional measures to support the Maldives in addressing its economic issues. Leaders from both sides acknowledged that this is a great opportunity to develop a new cooperation framework, transforming their relationship into a Comprehensive Economic and Maritime Security Partnership.
With the introduction of UPI, Indian tourists will be able to make payments in Indian rupees using UPI-enabled apps, eliminating the need for currency conversion. This convenience is part of President Muizzu’s plan to establish a consortium that will drive the UPI’s rollout, ensuring involvement from key stakeholders in the Maldives. Dr. S. Jaishankar, the Indian External Affairs Minister, signed an agreement in August to implement UPI in the Maldives. The National Payments Corporation of India manages UPI, which is already operational in various countries such as the UAE, Sri Lanka, France, Malaysia, Singapore, Nepal, the UK, and Mauritius. By implementing UPI, India reaffirms its commitment to sharing developmental experiences with its partner nations.
