The Maldives Monetary Authority (MMA) has announced the successful launch of the integration between the Maldives instant payment system ‘Favra’ and India’s Unified Payments Interface (UPI) on July 30, 2026. This marks a transformative milestone in cross-border digital financial connectivity and bilateral economic cooperation between Maldives and India.
The main features of this development:
Real-time Transfers : The new service enables individuals in the Maldives to transfer funds in real time to beneficiaries in India using ‘Favraa’. Transactions are initiated in Maldivian Rufiyaa (MVR) and credited to recipients in Indian Rupees via UPI.
Initial Phase Partnerships: The service has been launched with the partnership of two local banks: Bank of Maldives Plc and Maldives Islamic Bank Plc. Customers of these banks can initiate direct person-to-person (P2P) transfers to UPI-enabled bank accounts in India using their mobile banking apps and the ‘Favraa’ payment rail.
Approved Categories: Approved money transfer categories include remittances related to family maintenance under both Foreign Inward and Foreign Outward Remittances, as well as gift-related remittances approved under Foreign Outward Remittances.
Collaborative Achievement: This implementation demonstrates consistent collaboration between MMA, Reserve Bank of India (RBI), NPCI International Payments Limited (NIPL), participating financial institutions and other stakeholders from both countries.
The agreement for ‘Favraa-UPI’ integration was signed between NIPL and MMA in July 2025. After a quick 10-day timeframe for testing, certification, onboarding and live verification, the corridor has achieved full operational readiness. The next phase of the collaboration will introduce additional cross-border payment use cases including QR-based merchant payments and other innovative digital payment services, further strengthening the economic and financial ties between Maldives and India. Now Cambodia, Singapore, United Arab Emirates, France, Mauritius, Nepal, Bhutan, Qatar and Sri Lanka – which facilitate Indian travelers to make seamless payments abroad through UPI.