Direct digital corridor: Maldives and India launch real-time cross-border transfers via Favara-UPI integration
31 ޖުލައި 2026 | ހުކުރު 12:32The Maldives and India have linked their Favara and UPI payment systems to enable instant cross-border transfers for education, medical, and family needs. Currently supporting outward remittances from select Maldivian banks, the service plans to expand into merchant payments and QR transactions to strengthen bilateral economic ties.
India’s Unified Payments Interface (UPI) has emerged as a game-changer in the digital payments landscape since its launch in 2016. | orfonline.org
The Maldives' instant payment network, Favara, and India's Unified Payments Interface (UPI) were officially linked on Thursday, creating a streamlined cross-border money transfer system between the two countries.
This integration marks the debut connection of the Favara platform to a global payment grid. The Maldives Monetary Authority (MMA) highlighted this milestone as a major leap forward in advancing digital financial interactions between both nations.
UPI stands as one of the world's largest and most effective digital transaction networks.
Through this newly launched service, users in the Maldives can dispatch funds instantly to bank accounts across India. Senders initiate transactions using Maldivian Rufiyaa (MVR) or U.S. Dollars (USD), while recipients in India collect the converted funds in Indian Rupees (INR).
During its rollout phase, the mechanism supports individual person-to-person (P2P) transfers. However, the MMA intends to roll out person-to-merchant (P2M) capabilities within the next year, enabling direct commercial payments to businesses.
Current details show that functionality is restricted exclusively to outward remittances traveling from the Maldives to India, with inward transfers from India back to the Maldives currently unavailable.
Allowed transfers are limited to designated permitted categories, including family support, medical expenses, and educational fees. Users are capped at a monthly remittance limit of INR 24,000 (around USD 250), though individual banking institutions hold the authority to establish lower thresholds if they choose.
Bank of Maldives (BML) and Maldives Islamic Bank (MIB) represent the initial participating institutions for this first stage. In an official release, the MMA verified that account holders at these two entities can utilize their digital banking portals to move money directly to UPI-linked accounts in India via Favara.
To safeguard transactions, the recipient's bank details undergo validation through the UPI grid before processing completes. The system also displays real-time exchange rates, applicable banking fees, and the verified recipient's name to the sender throughout the transaction workflow.
The initiative represents a joint venture involving the MMA, the Reserve Bank of India (RBI), NPCI International Payments Limited (NIPL), alongside several financial bodies across both jurisdictions. The system aims to simplify cross-country monetary transfers, offering a more convenient and efficient remittance channel for individuals and households.
Looking ahead, partners plan to rollout extra functionalities through the venture, such as QR code-driven merchant payments along with additional modern digital transaction options. The MMA expects these upcoming tools to substantially reinforce financial and economic bonds between the Maldives and India.
