Maldives Signs Agreement to Link Instant Payment Systems with India’s UPI

The Maldives has signed an agreement to connect its instant payment system, Fawara, with India’s Unified Payments Interface (UPI).

The agreement was signed between the Maldives Monetary Authority (MMA) and NPCI International Payments Limited (NIPL) of India.

According to MMA, this agreement will help develop the country’s payment infrastructure and further strengthen the Maldivian financial system.

The integration will enable instant, cost-effective money transfers between individuals in both countries. The implementation will be carried out in two phases:

Phase 1: Enable real-time person-to-person payments between Maldives and India by early 2026
Phase 2: Facilitate merchant payments through QR codes

The service is designed to allow transactions in each country’s local currency. NIPL has already implemented similar UPI-based payment services in Singapore, Sri Lanka, and Nepal.

As part of developing the payment infrastructure, MMA has initiated the establishment of “Payments Maldives,” a dedicated company for this purpose. The authority is currently working on necessary legal framework modifications.

This model of developing a national payment system under a separate company aligns with successful implementations in various countries, including Canada, Jordan, India, Thailand, and Saudi Arabia.

MMA is also developing a National QR Code Standard to ensure interoperability among banks and payment service providers. This will promote innovative payment solutions and increase Fawara-based transactions, facilitating easier international transactions between the two countries.

The initiative aims to enhance financial inclusion and reduce cash dependency while simplifying transactions for individuals and businesses, aligning with MMA’s strategic objectives.