Individuals in the Maldives can now transfer money in real time to UPI-enabled bank accounts in India following the successful integration of the country's instant payment system, Favara, with the Unified Payments Interface (UPI).
The cross-border payment service was launched on Thursday, the finance ministry said in a statement on Friday.
NPCI International Payments Ltd (NIPL) and the Maldives Monetary Authority (MMA) announced the successful integration of the Maldives' instant payment system, Favara, with UPI. The service went live on Thursday, the finance ministry said in a statement on Friday.
With the launch, individuals in the Maldives can now send money in real time to UPI-enabled bank accounts in India using their mobile banking applications.
The service is currently available through two banks -- Bank of Maldives Plc and Maldives Islamic Bank Plc.
Customers of these banks can make person-to-person (P2P) transfers directly to UPI-enabled bank accounts in India through the Favara payment system.
According to the finance ministry, the integration marks a milestone in cross-border digital financial connectivity and bilateral economic cooperation between India and the Maldives.
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The implementation was carried out through collaboration between the Maldives Monetary Authority, the Reserve Bank of India (RBI), NPCI International Payments Ltd, participating financial institutions and other stakeholders in both countries.
The ministry said future phases of the partnership will introduce additional cross-border payment services, including QR code-based merchant payments and other digital payment solutions, to further strengthen economic and financial ties between the two countries.
UPI is currently accepted in nine countries, namely, Cambodia, Singapore, the United Arab Emirates, France, Mauritius, Nepal, Bhutan, Qatar and Sri Lanka allowing Indian travellers to make payments abroad using the platform.
NPCI, an initiative of the RBI and the Indian Banks' Association (IBA), operates retail payment and settlement systems in India, including the UPI platform that enables real-time payments between individuals and merchants.
