Maldives Launches Favara-UPI Payment Service With India

MALE, Maldives — The Maldives Monetary Authority (MMA) and NPCI International Payments Limited (NIPL) launched a real-time cross-border payment service connecting the Maldives' instant payment platform, Favara, with India's Unified Payments Interface (UPI). The integration went live on July 30, 2026, as confirmed by official statements from both countries' central banking and finance authorities on July 31, 2026.

The bilateral agreement allows individuals in the Maldives to send person-to-person (P2P) remittances directly into UPI-enabled bank accounts in India using their existing mobile banking applications. The initiative reduces transaction fees and settlement delays, enhancing financial connectivity for students, medical tourists, and workers moving funds between the two Indian Ocean neighbors.

Technical Integration and Financial Structure

The payment corridor links the domestic settlement networks of both countries, converting transactions instantly between Maldivian Rufiyaa (MVR) or US Dollars (USD) and Indian Rupees (INR).

+-----------------------------------------------------------------------------------+
|                    FAVARA-UPI CROSS-BORDER PAYMENT SUMMARY                        |
+--------------------------+--------------------------------------------------------+
| Parameter                | Operational Details                                    |
+--------------------------+--------------------------------------------------------+
| Launch Date              | July 30, 2026                                          |
| Initiating System        | Favara (Maldives Instant Payment System)               |
| Receiving System         | Unified Payments Interface (UPI, India)                |
| Initial Partner Banks    | Bank of Maldives Plc, Maldives Islamic Bank Plc        |
| Currency Conversion      | MVR / USD to Indian Rupee (INR)                        |
| Transaction Limit        | Up to INR 24,000 per month per individual bank account |
| Primary Use Cases        | Education, medical expenses, and family maintenance    |
+--------------------------+--------------------------------------------------------+

Initial Bank Rollout and Transfer Limits

The service is currently accessible to customers of two major financial institutions in the island nation: Bank of Maldives Plc and Maldives Islamic Bank Plc. Account holders can initiate instant P2P transfers without downloading additional applications or completing separate registration procedures.

Under established regulatory frameworks, Phase 1 permits individual transfers up to INR 24,000 per month for authorized categories, including family maintenance, higher education fees, and medical treatment expenses in India.

Strategic Roadmap and Future Payment Expansion

The integration was developed through cooperation involving the Maldives Monetary Authority, the Reserve Bank of India (RBI), NIPL, and participating commercial banks. The initial agreement was signed in July 2025 before undergoing technical testing and live validation.

+-----------------------------------------------------------------------------------+
|                       FAVARA-UPI IMPLEMENTATION PHASES                            |
+-------------------+---------------------------------------------------------------+
| Phase             | Planned Services & Capability                                 |
+-------------------+---------------------------------------------------------------+
| Phase 1 (Live)    | Outbound P2P transfers from Maldives to Indian UPI accounts   |
| Phase 2 (Upcoming)| Inbound transfers from India to Maldivian bank accounts       |
| Phase 3 (Planned) | Cross-border merchant QR-code payments for tourists/traders   |
+-------------------+---------------------------------------------------------------+

The MMA confirmed that discussions are underway to roll out subsequent phases. These will include testing inbound fund flows from India to the Maldives and establishing QR-code merchant payment interoperability, allowing Indian tourists and business travelers to pay local Maldivian vendors directly via domestic UPI apps.

Official Sources Section

Regulatory approvals and project disclosures were communicated through joint releases by Indian and Maldivian government departments and financial regulators.

Official announcements were published by:

• Maldives Monetary Authority

• Ministry of Finance, Government of India

• Reserve Bank of India

• NPCI International Payments Limited (NIPL)

Quote Section

According to an official regulatory release issued by the Ministry of Finance:

"The successful go-live of the integration between the Maldives' Instant Payment System 'Favara' and Unified Payments Interface (UPI) marks a transformative milestone in cross-border digital financial connectivity and bilateral economic cooperation between the Maldives and India."

Why It Matters

Connecting the Favara and UPI payment corridors lowers the cost of cross-border financial transactions between India and the Maldives. By eliminating intermediary banking fees and long wire transfer processing times, the real-time link benefits Maldivian citizens seeking healthcare and education in India, as well as Indian expatriates remitting earnings home. The integration expands UPI's international footprint, joining regional networks in countries such as Singapore, Sri Lanka, Mauritius, France, and the UAE.

Key Facts at a Glance

• Launch Date: The Favara-UPI cross-border payment service went live on July 30, 2026.

• Participating Banks: Available initially via Bank of Maldives and Maldives Islamic Bank.

• Transfer Limits: Capped at INR 24,000 per month for approved personal, medical, and educational categories.

• Core Technology: Connects the Maldives' Favara network directly with India's UPI infrastructure.

• Future Expansion: Planned expansion includes merchant QR-code payments and inbound transfers to the Maldives.

FAQ Section

How do users in the Maldives send money to India using the new system?

Customers of participating Maldivian banks can initiate transfers directly using their existing mobile banking applications by selecting the Favara payment network and entering the recipient's UPI details.

Which banks support the Favara-UPI payment corridor?

The service launched with Bank of Maldives Plc and Maldives Islamic Bank Plc, with additional financial institutions expected to join in later phases.

What is the maximum amount that can be transferred per month?

Eligible individuals can transfer up to INR 24,000 per month per participating bank account for permitted categories such as education, healthcare, and family maintenance.

Can tourists use UPI for merchant payments in the Maldives yet?

Merchant QR-code payments are scheduled for rollout during the second phase of the project.

Source: Ministry of Finance | Reserve Bank of India | Maldives Monetary Authority | NPCI International Payments Limited