MMA to Link Favara and India's UPI for Direct QR Merchant Payments

The Maldives Monetary Authority (MMA) has begun technical work to integrate the domestic 'Favara' payment system with India’s Unified Payments Interface (UPI) to enable direct QR code transactions for merchants. Deputy Governor Aishath Asna Hamdi announced that this expansion will allow citizens of both nations to settle business transactions using their native mobile applications. This move aims to streamline commercial exchanges and reduce the reliance on traditional payment methods during cross-border trade and travel. Currently, the bilateral project has already interlinked the two systems to facilitate fast monetary transfers from the Maldives to India. These services are presently available through the Bank of Maldives and the Maldives Islamic Bank. Regulatory authorities plan to expand this access to all domestic commercial banks and licensed payment service providers to ensure wider public availability. “Today is merely the beginning,” Deputy Governor Hamdi stated. “Our hope is that, through new innovations, we can further strengthen Favara cross-border transactions and make sending and receiving money a convenient, affordable, and dignified experience for everyone in need.” Under the current framework, cross-border transfers are restricted to outward remittances from the Maldives to India, though development for inward transfers is ongoing. The system utilizes a multi-currency framework, allowing users to execute transfers seamlessly across accounts denominated in Maldivian Rufiyaa, US Dollars, and Indian Rupees. To maintain regulatory oversight, the MMA has set monthly remittance limits for individual customers, capping transfers at 24,000 Indian Rupees or 250 US Dollars. Once the QR merchant system is fully operational, it is expected to significantly lower the friction for small businesses and tourists operating between the two neighboring countries.