Favara-UPI link goes live, enabling instant payments from Maldives to India

The Maldives Monetary Authority (MMA) has launched a service linking the national instant payment system, Favara, with India’s Unified Payments Interface (UPI), enabling real-time transfers from the Maldives to India.

The service was inaugurated on Thursday at the central bank by MMA Governor Ahmed Munawar. Foreign Minister Iruthisham Adam and Indian High Commissioner G. Balasubramanian attended the ceremony.

The initial rollout is being carried out with Bank of Maldives (BML) and Maldives Islamic Bank (MIB). Customers of the two banks can now send money directly to UPI-enabled accounts in India through their existing mobile apps and internet banking platforms, without registering for any additional service.

Under the arrangement, senders pay in Maldivian Rufiyaa or US Dollars, and recipients receive Indian Rupees (INR) instantly to their bank accounts.

This marks the first time Maldives’ own payment infrastructure has been connected to an international system. With the launch, Maldives joins a small group of countries with live cross-border interoperability with UPI. Previously, only Singapore and Nepal had established similar connectivity. The MMA noted that Maldives is also the first country to go live under its agreement with India’s NIPL within such a short timeframe.

The service is being introduced in phases. The first phase supports person-to-person (P2P) transfers between individuals.

For now, transfers are permitted only from the Maldives to India. In line with foreign exchange regulations, money can be sent for education expenses, medical treatment for Maldivians holding long-term medical visas, and family maintenance. Each customer may transfer up to INR 24,000 (about USD 250) per month.

Before a transfer is completed, the recipient’s account is authenticated through UPI. The system displays the verified recipient name, the applicable exchange rate, and any bank fees. The MMA says the experience is designed to feel like making a domestic instant payment.

Upcoming phases will introduce person-to-merchant (P2M) QR payments, while testing of the reverse corridor from India to the Maldives is expected to begin soon.

The MMA said the initiative is a significant step in connecting the Maldives with one of the world’s leading digital payment ecosystems, offering individuals and families a faster and more convenient way to send money, while giving local banks a new remittance channel built directly into their existing platforms.