MMA raises capital requirements to strengthen financial viability of PSPs

The Maldives Monetary Authority (MMA) has increased the minimum capital requirements for payment service providers (PSPs) to strengthen the security of the financial system and enhance the financial capacity of licensed institutions.

The changes were made through an amendment to the Payment Services Regulation, published in the government Gazette on Thursday.

Under the amendment, the minimum unimpaired capital that PSP licensees must maintain at all times has been revised as follows:

• Electronic Money Issuance Service: increased from MVR 500,000 to MVR 2,000,000  

• Payment Transaction Accommodation Service: increased from MVR 200,000 to MVR 2,000,000  

• Remittance Service: increased from MVR 200,000 to MVR 2,000,000  

• Payment Initiation Service: increased from MVR 100,000 to MVR 1,000,000  

• Account Information Provision Service: increased from MVR 100,000 to MVR 1,000,000

MMA said the purpose of the amendment is to ensure that licensed PSPs are financially strong enough to withstand operational losses and continue providing services safely and without interruption.

The central bank added that these measures are essential to maintaining public confidence in the financial system and ensuring that the sector is operated by financially sound and responsible institutions.