Maldives and India launch Favara-UPI cross-border payment corridor

Individuals from Maldives have been allowed to transfer funds in real time to UPI-enabled bank accounts in India through their mobile banking applications, according to a government press release.

The Maldives Monetary Authority (MMA) has also announced in parallel on 30 July a successful go-live of the integration between the Maldives Instant Payment System, ‘Favara’ and India’s Unified Payments Interface (UPI).

Transactions can be initiated in Maldivian rufiyaa and credited to recipients in Indian rupees through UPI. The service has commenced with the participation of two local banks: Bank of Maldives Plc and Maldives Islamic Bank Plc.

Customers of these banks can initiate limited transactions like person-to-person transfers to UPI-enabled bank accounts in India using their mobile banking applications and the Favara payment rail. Permitted remittance categories include family-maintenance-related remittances under ‘Inward and Outward Remittance’, as well as gift-related remittances that are permitted under ‘Foreign Outward Remittance’.

Subsequent phases of the collaboration are expected to introduce QR-based merchant payments services.

UPI is now said to be accepted in nine countries including Cambodia, Singapore, United Arab Emirates, France, Mauritius, Nepal, Bhutan, Qatar and Sri Lanka.