The Maldives and India will link their national instant payment systems, Favara and United Payment Interface (UPI), respectively, by July next year, says Ahmed Munawar, the governor of Maldives Monetary Authority (MMA).
At the launch financial sector development initiatives on Monday, Munawar said that the central bank’s current focus was on financial sustainability and inclusivity.
The ceremony, held at Barceló Nasandhura Malé, saw the launch of the National Financial Inclusion Strategy (NFIS), the National Sustainable Finance Roadmap (NSFR), and Payment Maldives.
Munawar invited international banks and payment services to join Payment Maldives - a new national entity designed to lead payment innovations and coordinate the execution of strategic reforms - as equity partners.
He said that one of the biggest tasks the central bank plans to get done next year is to have QR-based digital transactions made via Payment Maldives fit the national QR standard - PayMV QR.
“And by July, [Favara] will be linked with India’s UPI,” said Munawar.
It will mark Favara’s first cross-border integration.
The MMA and NPCI International Payments Limited (NIPL) signed an agreement to connect Favara with UPI back in July.
According to the MMA, the first phase of this integration would allow individuals in both countries to send and receive money instantly, securely, and at lower cost.
The MMA said that though initially focused on person-to-person transfers, the system will later expand to enable QR-based digital payments for merchants, supporting local businesses and facilitating cashless transactions in local currencies.
The partnership forms part of the MMA’s broader three-year strategic plan aimed at improving international digital payment solutions and promoting financial inclusion. The integration is expected to reduce the friction and cost associated with cross-border transactions, helping individuals and businesses participate more fully in the digital economy.