Maldives–India Digital Payment Link Goes Live as Favara Integrates with UPI
By Suman Munshi
Chief Editor, IBG NEWS
New Delhi, July 31, 2026: In a significant boost to India–Maldives financial cooperation, the Maldives Monetary Authority (MMA) has officially launched the cross-border payment corridor connecting the Maldives’ instant payment platform, Favara, with India’s Unified Payments Interface (UPI). The integration became operational on July 30, 2026, marking a major step forward in digital financial connectivity between the two neighbouring countries.
The newly activated payment corridor enables individuals in the Maldives to send money instantly to beneficiaries holding UPI-enabled bank accounts in India. Transactions are initiated in Maldivian Rufiyaa (MVR) and are seamlessly converted and credited in Indian Rupees (INR), providing faster and more convenient cross-border remittance services.
Initial Rollout Through Two Maldivian Banks
The service has been launched with the participation of Bank of Maldives Plc and Maldives Islamic Bank Plc. Customers of these banks can now transfer funds directly to Indian bank accounts using their mobile banking applications powered by the Favara payment platform.
Initially, the facility supports person-to-person (P2P) transfers under approved remittance categories, including family maintenance payments and eligible gift remittances, in accordance with the foreign remittance regulations of the Maldives.
Joint Collaboration Drives Milestone
The successful implementation of the payment corridor is the result of close cooperation between the Maldives Monetary Authority (MMA), the Reserve Bank of India (RBI), NPCI International Payments Limited (NIPL), participating banks and financial institutions from both countries.
The agreement to integrate Favara with UPI was signed in July 2025. Following a rapid testing, certification and validation process completed within just ten days, the system was declared ready for full-scale operations.
More Cross-Border Payment Services Planned
Authorities from both nations have indicated that this is only the first phase of a broader digital payments partnership. Future enhancements are expected to include QR code-based merchant payments, enabling travellers and businesses to make seamless retail transactions across borders. Additional digital payment services are also under development to strengthen bilateral trade, tourism and financial cooperation.
UPI Continues Its Global Expansion
India’s Unified Payments Interface has rapidly evolved into one of the world’s leading digital payment ecosystems. With the Maldives now joining the network through the Favara integration, UPI’s international reach continues to expand.
At present, UPI services are available in nine countries:
- Cambodia
- Singapore
- United Arab Emirates
- France
- Mauritius
- Nepal
- Bhutan
- Qatar
- Sri Lanka
These partnerships allow Indian travellers to make convenient digital payments abroad while also creating new opportunities for cross-border financial transactions.
Strengthening India–Maldives Economic Partnership
The launch of the Favara–UPI corridor represents another milestone in the growing economic relationship between India and the Maldives. By enabling secure, real-time digital remittances, the initiative is expected to improve financial inclusion, simplify cross-border transactions, and deepen bilateral cooperation in the digital economy.
As both countries continue to embrace financial technology, the integration is likely to serve as a model for future international payment partnerships, supporting faster, more efficient and more accessible digital financial services across the region.
