Maldives-India Favara-UPI Link Goes Live, Enables Real-Time Cross-Border Transfers

New Delhi, Jul 31 (KNN) The Maldives Monetary Authority (MMA) announced the operationalisation of the integration between the Maldives Instant Payment System, Favara, and India's Unified Payments Interface (UPI) on July 30, 2026, enabling real-time person-to-person fund transfers from the Maldives to UPI-enabled bank accounts in India.

The service initially involves Bank of Maldives Plc and Maldives Islamic Bank Plc. Customers of these banks can initiate P2P transfers through their mobile banking applications using the Favara payment rail. Transactions are initiated in Maldivian Rufiyaa (MVR) and credited to recipients in Indian Rupees (INR) through UPI.

The service currently covers permitted remittance categories, including family-maintenance-related remittances under Foreign Inward and Foreign Outward Remittance and gift-related remittances permitted under Foreign Outward Remittance.

The integration was implemented through cooperation between the MMA, Reserve Bank of India (RBI), NPCI International Payments Limited (NIPL), participating financial institutions and other stakeholders from both countries.

The agreement for the Favara-UPI integration was signed between NIPL and MMA in July 2025. The implementation subsequently underwent testing, certification, onboarding and live validation before becoming operational.

Further phases are expected to include QR-based merchant payments and other cross-border digital payment services.

UPI is currently accepted in Cambodia, Singapore, the United Arab Emirates, France, Mauritius, Nepal, Bhutan, Qatar and Sri Lanka, enabling Indian travellers to make UPI-based payments in these countries.

(KNN Bureau)