Maldives Launches Instant Cross-Border Payment to India as Favara Connects with UPI

In a major milestone for cross-border digital finance, the Maldives Monetary Authority (MMA) has officially launched a revolutionary service linking the Maldives’ national payment system, Favara, with India’s Unified Payments Interface (UPI). 

The integration enables seamless, instant money transfers directly from Maldivian Rufiyaa accounts to bank accounts across India.

The service was inaugurated during a special ceremony held at the MMA headquarters. Developed in close collaboration with the Bank of Maldives (BML) and the Maldives Islamic Bank (MIB), the system allows customers of both financial institutions to send money directly to India using their existing mobile banking applications or internet banking portals, eliminating the need to download any external applications.

Under the new mechanism, senders can make payments in either Maldivian Rufiyaa (MVR) or US Dollars (USD), and the recipient's Indian bank account will instantly receive the funds converted into Indian Rupees (INR). The MMA highlighted the ease of the process, describing it as being as simple, swift, and secure as initiating an intra-bank transfer within the Maldives.

Phased Rollout and Transaction Limits

To ensure a smooth transition, the MMA is executing a phased rollout of the service. Currently, in its first phase, the system exclusively supports Person-to-Person (P2P) transactions between individuals. However, the MMA confirmed that active discussions are already underway to introduce a Person-to-Merchant (P2M) system in the second phase, which will allow Maldivian travelers and users to make direct payments to Indian businesses using QR codes.

While the service is currently limited to outbound transfers from the Maldives to India, the MMA announced that testing for the reciprocal corridor—allowing instant money transfers from India to the Maldives—is scheduled to commence in the coming days.

In compliance with prevailing foreign exchange regulations, outbound transfers are subject to a monthly cap of 24,000 Indian Rupees (around USD 250) per customer. The MMA noted that individual banks retain the operational flexibility to set lower transactional limits if they deem it necessary.

Unprecedented Transparency and Security

The Favara-UPI link introduces several safety and convenience features designed to protect consumers. Prior to finalising any transaction, the system utilises the UPI network to verify the validity of the recipient’s account. Senders will also be presented with real-time exchange rates, applicable bank fees, and the registered name of the recipient before confirming the transfer, ensuring complete transparency and minimising transaction errors.

Future phases of the project will expand the digital ecosystem to include QR-code-based merchant payments and other innovative digital financial services.

A Landmark Bilateral Collaboration

This historic initiative stems from an agreement signed on July 24, 2025, between the MMA and NPCI International Payments Limited (NIPL), the international arm of the National Payments Corporation of India. The successful deployment of the system is the result of a highly coordinated, collaborative effort involving the MMA, Payments Maldives, the Reserve Bank of India (RBI), NIPL, and key financial institutions from both nations.

By linking with UPI, the Maldives taps into one of the world's most successful and expansive public digital infrastructure projects. Renowned for its user-friendly interface as the backbone of popular apps like Google Pay, PhonePe, and Paytm, UPI has processed an astounding 241.6 billion transactions globally over the past and present year, accounting for around USD 3.56 trillion in transaction value. 

This integration marks a significant leap forward in strengthening economic ties and financial connectivity between the Maldives and India.