Business News | Real-time Digital Transfers Begin Between Maldives and India Via Favara-UPI Cross-border Payment Corridor

New Delhi [India], July 31 (ANI): The Favara-UPI cross-border payment corridor went live on Thursday between the Maldives and India following the integration of the Maldives Instant Payment System, 'Favara', with India's Unified Payments Interface (UPI).

According to the Ministry of Finance, the Maldives Monetary Authority (MMA) announced the successful operationalization of the integration on July 30, 2026. The initiative marks a transformative milestone in cross-border digital financial connectivity and bilateral economic cooperation between the two nations.

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Under the new mechanism, individuals in the Maldives can transfer funds using Favara to beneficiaries in India in real time. Transactions are initiated in Maldivian Rufiyaa (MVR) and credited directly to recipients in Indian Rupees (INR) through the UPI network.

The service opened with a select group of financial institutions in the island nation. As detailed in the official announcement, "The service has commenced with the participation of two local banks: Bank of Maldives Plc and Maldives Islamic Bank Plc."

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The document noted that "customers of these banks can initiate person-to-person (P2P) transfers directly to UPI-enabled bank accounts in India using their mobile banking applications and the Favara payment rail."

Permitted remittance categories under the framework include family-maintenance-related remittances under both Foreign Inward and Foreign Outward Remittance regulations. The system also permits gift-related remittances classified under Foreign Outward Remittance rules.

Highlighting the inter-agency effort behind the rollout, the statement noted, "The implementation reflects close collaboration between the MMA, the Reserve Bank of India (RBI), NPCI International Payments Limited (NIPL), participating financial institutions, and other stakeholders in both countries."

The bilateral framework builds upon preliminary structural arrangements. The formal agreement for the Favara-UPI integration was executed between NIPL and MMA in July 2025. Operational readiness was achieved following an accelerated 10-day schedule dedicated to testing, certification, onboarding, and live validation.

Further extensions of the digital interface remain planned for subsequent stages of implementation. The official statement highlighted that "subsequent phases of the collaboration will introduce additional cross-border payment use cases, including QR-based merchant payments and other innovative digital payment services, further strengthening economic and financial ties between the Maldives and India."

The deployment adds to the international presence of India's digital payment ecosystem. Beyond the Maldives, UPI services operate across nine other countries, including Cambodia, Singapore, the United Arab Emirates, France, Mauritius, Nepal, Bhutan, Qatar, and Sri Lanka, facilitating seamless transactions for Indian travellers abroad. (ANI)

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