Maldives Integrates 'Fawara' Payment System with India's UPI
Significant Milestone in Digital Financial Connectivity
The Maldives Monetary Authority (MMA) has announced the successful integration of its instant payment system, 'Fawara', with India's Unified Payments Interface (UPI). This development marks a crucial milestone in enhancing cross-border digital financial connectivity and bilateral economic cooperation between the Maldives and India.
New Features and Partnerships
This innovative service enables real-time money transfers from individuals residing in the Maldives to beneficiaries in India. Transactions begin in Maldivian Rufiyaa (MVR) and are deposited in Indian Rupees (INR) to recipients via UPI. Initially, two local banks, Bank of Maldives PLC and Maldives Islamic Bank PLC, are participating in this initiative. Their customers can now utilize their mobile banking applications and the Fawara payment system for direct person-to-person (P2P) transfers to UPI-enabled bank accounts in India.
Categories of Remittances
The approved remittance categories include family maintenance under foreign incoming and outgoing remittances, as well as gift-related remittances under foreign outgoing. This collaborative achievement is the result of close cooperation among MMA, the Reserve Bank of India (RBI), NPCI International Payments Limited (NIPL), participating financial institutions, and other stakeholders from both nations.
Future Plans and Current Expansion
The agreement for the Fawara-UPI integration was established in July 2025, and the corridor achieved full operational readiness after a rapid 10-day period for testing, certification, onboarding, and live verification. Future phases of this collaboration are expected to introduce additional cross-border payment functionalities, such as QR-based merchant payments and other innovative digital payment services, further strengthening economic and financial ties. Currently, UPI is accepted in nine other countries, including Cambodia, Singapore, UAE, France, Mauritius, Nepal, Bhutan, Qatar, and Sri Lanka, facilitating seamless international payments for Indian travelers.