Maldives Monetary Authority (MMA) has launched the country's first cross-border payment service by connecting the national payment system, Favara, with India's Unified Payments Interface (UPI), marking a major milestone in the country's digital financial sector.

The new service makes the Maldives one of only a handful of countries, alongside Singapore and Nepal, to integrate its domestic payment infrastructure with India's UPI network.

The service was officially launched during a ceremony at the MMA headquarters attended by senior government officials, including MMA Governor Ahmed Munawwar, Minister of Foreign Affairs Iruthisham Adam, and Indian High Commissioner G.K. Balasubramanian.

The initial rollout includes the Bank of Maldives (BML) and Maldives Islamic Bank (MIB).

Customers of both banks can now send money directly to UPI-linked bank accounts in India through their existing mobile and internet banking platforms.

Transfers made in Maldivian rufiyaa or U.S. dollars are converted and credited instantly to recipients in Indian rupees.

According to the MMA, the platform is designed to provide a secure and transparent payment experience by displaying exchange rates, applicable fees, and the recipient's verified name before a transaction is completed.

The initiative was developed through collaboration between the MMA, NPCI International Payments Limited (NIPL), and the Reserve Bank of India (RBI).

Maldives is also the first country to launch the service within such a short period after signing its agreement with NIPL in July 2025.

At present, the platform supports person-to-person transfers for approved purposes, including education expenses, medical costs for long-term visa holders, and family support.

Transactions are subject to foreign exchange regulations, with a monthly limit of INR 24,000 (approximately USD 250) per customer, although individual banks may apply lower limits.

The MMA said the next phase of the project will introduce person-to-merchant payments, enabling Maldivian travelers and businesses to make QR code payments across India.

The authority described the integration as a significant step toward expanding international payment services and strengthening the Maldives' participation in the global digital economy.