Maldives to Link Instant Payment System with India’s UPI by July 2026

Governor of the Maldives Monetary Authority (MMA), Ahmed Munnavar, announced that the Instant Payment System (Favara) will be integrated with India’s Unified Payments Interface (UPI) in July 2026, enabling secure, seamless financial transactions between the Maldives and India.

The announcement was made today at a ceremony held at Barceló Nasandhura to launch three key financial initiatives, including Payment Maldives. Speaking at the event, Munnavar said Payment Maldives will provide greater flexibility by linking with international payment networks, adding that QR code payments will be available starting next April.

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UPI is India’s most widely used digital payment system, facilitating cashless transactions in businesses, taxis, and local grocery stores.

Governor Munnavar, who delivered the opening remarks, highlighted the significance of these initiatives for the Maldives’ economic sector. He officially launched the Payment Maldives initiative, while President Dr Mohamed Muizzu launched the National Financial Inclusion Strategy 2026-2030 and the National Sustainable Finance Roadmap.

Payment Maldives, part of the Maldives 2.0 initiative, aims to strengthen the retail payment system, advance financial inclusion, and support digital innovation.

 “This new venture represents a fresh beginning, one where we work in partnership with banks and other financial institutions to drive innovation, strengthen the payment ecosystem and enhance access to secure financial services,” Munnavar said. 

The initiative has reduced cheque payments from 40 percent six years ago to 7 percent last year, while account transfers have increased.

“Today is a landmark moment in our journey towards building a stronger, more resilient and a more inclusive Maldives,” Munnavar said. “Today we lay the foundation for a Maldives that is digital by design, sustainable by choice, and inclusive by principle.”

The National Financial Inclusion Strategy 2026-2030, launched by President Muizzu, is based on a nationwide survey conducted in 2022. According to Munnavar, the findings showed that 14 percent of women remain unbanked compared with 5 percent of men, insurance and risk mitigation tools are underutilised, and only 38 percent of elderly use internet banking, leaving them vulnerable to scams. Police reported 165 scam cases this year, causing losses of MVR 1.2 million. The survey also found that 22 percent of adults are self-employed and rely on informal borrowing rather than formal financial services.

The strategy is built around five pillars: access to finance, Islamic finance, digital finance, inclusive green finance, and consumer empowerment and financial literacy. Awareness sessions have reached over 600 students nationwide.

The National Sustainable Finance Roadmap, launched by President Muizzu, focuses on equitable access to financial resources. “Sustainable development can only be achieved when equity is reached,” he said, noting that young people often lack funds to develop plans and fall back on savings during disasters. The roadmap outlines how the financial system can better support the population and the Maldives.

President Muizzu concluded the ceremony by presenting appreciation awards to key figures in the Maldives financial sector.