India and the Maldives have operationalised the Favara-UPI cross-border payment corridor, enabling real-time digital fund transfers between the two countries and marking a significant step in strengthening bilateral financial connectivity.
The Maldives Monetary Authority (MMA) announced that the integration of the Maldives' Instant Payment System, Favara, with India's Unified Payments Interface (UPI) became operational on July 30. The initiative is expected to boost cross-border remittances and deepen economic cooperation between the two neighbours.
Under the new arrangement, individuals in the Maldives can transfer money directly to beneficiaries in India in real time. Transactions are initiated in Maldivian Rufiyaa (MVR) and are automatically credited in Indian Rupees (INR) to UPI-enabled bank accounts in India.
The service has initially been rolled out through two participating financial institutions in the Maldives — Bank of Maldives Plc and Maldives Islamic Bank Plc. Customers of these banks can make person-to-person (P2P) transfers using their mobile banking applications through the Favara payment platform.
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According to the Maldives Monetary Authority, the payment corridor currently supports family-maintenance remittances under both inward and outward remittance regulations. Gift-related remittances permitted under foreign outward remittance rules are also covered under the framework.
The project was implemented through close collaboration between the Maldives Monetary Authority, the Reserve Bank of India (RBI), NPCI International Payments Limited (NIPL), participating banks and other stakeholders in both countries.
The operational launch follows an agreement signed between NIPL and the Maldives Monetary Authority in July 2025. Authorities said the system achieved operational readiness after an accelerated 10-day programme involving testing, certification, onboarding and live validation.
Officials said the payment corridor will be expanded in phases. Future enhancements will include QR code-based merchant payments and additional digital payment services, allowing travellers and businesses to make seamless cross-border transactions while further strengthening economic and financial ties between India and the Maldives.
The latest rollout also expands the global footprint of India's digital payments ecosystem. With the Maldives joining the network, UPI now supports cross-border payment services in 10 countries, including Singapore, the United Arab Emirates, France, Mauritius, Nepal, Bhutan, Sri Lanka, Cambodia and Qatar, making digital transactions easier for Indian travellers and overseas users.
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