Parliament Approves National Payment Switch to Lower Fees and Streamline Banking

The Maldivian Parliament has unanimously passed an amendment to the National Payment System Act, authorizing the creation of a National Payment Switch to modernize the country's financial infrastructure. Under the new legislation, the Maldives Monetary Authority (MMA) is granted the power to designate a specific system as the National Payment Switch. Once established, all designated payment transactions—both domestic and international—processed through banks and payment service providers must be routed through this centralized system. Presenting the bill to the Majlis (the Maldivian Parliament), Hulhudhoo MP Mohamed Shahid explained that the initiative aims to create a unified network connecting various financial institutions. This integration will allow customers to make seamless payments using a card or digital wallet from one bank via the QR codes or point-of-sale machines of another bank. Beyond technical interoperability, the move is expected to have a direct economic impact on consumers and businesses by reducing the transaction fees typically charged by fragmented payment providers. By streamlining how funds move between different platforms, the government aims to increase efficiency and accessibility within the national economy. The bill reached the floor after a thorough review by the Parliament’s Public Accounts Committee. During the debate, members of the legislature emphasized the importance of the amendment in upgrading the Maldives' digital payment capabilities to meet modern standards. The amendment was passed with the unanimous support of all 66 Members of Parliament present at the sitting, signaling a strong legislative consensus on the need for a more integrated financial ecosystem.