Maldives-India Favara-UPI Transfers Begin

Real-time digital transfers between Maldives and India began on 30 July 2026 through the Favara-UPI cross-border payment corridor. The service connects the Maldives’ instant payment system, Favara, with India’s Unified Payments Interface (UPI) for person-to-person transfers credited instantly to UPI-enabled bank accounts in India.

Favara and UPI

Favara is the Maldives’ instant payment system, and UPI is India’s real-time retail payment system developed by the National Payments Corporation of India. The corridor allows transactions to be initiated in Maldivian Rufiyaa (MVR) or United States Dollars (USD) and settled in Indian Rupees (INR) in India.

Operational Features

In the initial phase, the facility is available to customers of Bank of Maldives Plc and Maldives Islamic Bank Plc. Customers can use their existing mobile banking applications for person-to-person transfers, and the monthly limit is up to INR 24,000 per customer, subject to bank-specific limits.

• Permitted remittance categories include family maintenance, educational expenses, medical treatment, and gift-related transfers.
• The service supports Maldivians holding long-term medical visas for eligible medical remittances.
• The transfer is credited instantly to UPI-enabled bank accounts in India.

Institutional Framework

The corridor was developed through cooperation among the Maldives Monetary Authority, the Reserve Bank of India, and NPCI International Payments Limited. The agreement for Favara-UPI integration was executed between NPCI International Payments Limited and the Maldives Monetary Authority in July 2025.

Cross-Border Payment Use Cases

Future phases of the collaboration are expected to include QR-based merchant payments, also called person-to-merchant or P2M payments. Testing of transfers from India to the Maldives is also planned under the same payment framework.

Important Facts for Exams

• UPI is India’s real-time payment system for instant bank-to-bank transfers.
• NPCI International Payments Limited handles the international expansion of UPI-based payment systems.
• Person-to-person transfers are commonly abbreviated as P2P, while person-to-merchant payments are abbreviated as P2M.
• Cross-border payment corridors are used to link domestic instant payment systems of two countries.

Exam Pointers

Maldives uses the Maldivian Rufiyaa as its currency, while India uses the Indian Rupee. The Maldives Monetary Authority is the central monetary authority of the Maldives.