Maldives Finance Minister: Indian tourists can soon pay in Rupees

Local currency settlement agreements between Maldives and India which will soon allow Indian tourists to pay for services in Indian Rupees, says Maldivian Finance Minister Moosa Zameer.

In November 2024, the Maldives Monetary Authority (MMA) and the Reserve Bank of India (RBI) signed a Memorandum of Understanding regarding the use of local currencies for financial transactions between the Maldives and India.

The Economic Ministry said at the time that the agreement establishes “a framework that facilitates current account transactions and direct investments in local currencies, strengthening trade and investment relations between the two countries.”

In an interview to Indian news outlet WION on Tuesday, Zameer said that it will soon allow Indian tourists to pay in Indian Rupees.

"Local currency settlement agreements that we are coming in, it will be easier for local businesses to source from India and pay in Indian rupees. And Indian tourists will come to the Maldives to pay in Indian rupees to the locals,” he said.

India is currently ranked as the sixth top source market for tourist arrivals to the Maldives, with over 73,000 visitors so far this year.

In his interview, Zameer said that the India market has seen “tremendous” growth this year.

He expects the recent state visit by Indian Prime Minister Narendra Modi will help drive up the numbers even further.

“And looking at the Indian market, yes, and it has been growing tremendously. And with the visit of Prime Minister Modi recently as a guest of honor for the Maldives Independence Day, I'm sure the numbers will increase,” he said.

Zameer said that the Maldives has been actively seeking ways to boost connectivity between Maldives and India.

He expects the new international passenger terminal that opened at the Velana International Airport will support these efforts.

“India as a source market has played a key role in Maldives, and I'm sure with this expansion, it will help much more than what we can anticipate right now, because we see the growth,” he said.

When questioned about the negotiations for a free trade agreement between Maldives and India, Zameer responded that the groundwork for the FTA was laid during PM Modi’s visit.

“The groundwork has been done with the Prime Minister's visit. We do a lot of cross-border trade, and with FTA definitely. FTA definitely will give a boost. And also, it will be more Indian businesses will be interested in supplying to the Maldives, will have the opportunity, plus local currency settlement agreements that we are coming in, it will be easier for local businesses to source from India and pay in Indian rupees,” he said.

“And Indian tourists will come to Maldives to pay in Indian rupees to the locals. Bank of Maldives has now started opening Indian rupee accounts for even retail customers, that's going to increase the kind of activity.”

On Friday, BML announced that its customers, including businesses and expatriates, can open Indian Rupee (INR) accounts online through internet or mobile banking starting August 1.

The bank began accepting RuPay International cards in Maldives in October 2024. They are now working with National Payments Corporation of India (NPCI) to begin acceptance of RuPay local cards as well as issuance of RuPay cards for BML customers with INR accounts.