The integration of the Maldives' instant payment system, Favara, with India's Unified Payments Interface (UPI) is expected to strengthen economic cooperation between the two countries and support efforts toward a proposed Maldives-India Free Trade Agreement (FTA), Economic Development, Transport and Trade Minister Mohamed Saeed said.

In a social media statement, Minister Saeed described the initiative, led by the Maldives Monetary Authority (MMA), as an important development in digital and financial cooperation between the neighboring countries.

The minister said linking Favara with UPI, one of the world's largest real-time payment networks, will make cross-border transactions faster, more secure and less expensive while making financial services more accessible to citizens.

He also highlighted the potential benefits beyond personal remittances, saying the system could facilitate greater activity in trade, tourism and investment between the Maldives and India.

The initial service has been introduced through the Bank of Maldives (BML) and Maldives Islamic Bank (MIB).

Customers of both banks can send money directly to eligible UPI-linked accounts in India through their existing mobile banking applications or online banking platforms, without relying on third-party payment services.

Transfers can be initiated in Maldivian Rufiyaa or U.S. Dollars, with funds credited to the recipient's Indian account in Indian rupees almost immediately.

Minister Saeed said the planned expansion of the system to include person-to-merchant and business-to-business payments could further strengthen commercial links between the two countries and create new opportunities for businesses.

The broader expansion is also expected to complement ongoing efforts toward a Maldives-India FTA by making cross-border payments more efficient for individuals and businesses.

The minister described the initiative as part of a broader vision to deepen economic ties between the neighboring countries through practical digital solutions and greater financial connectivity.