India-Maldives Launch Favara-UPI Cross-Border Payment Corridor

India and the Maldives have launched a real-time cross-border payment system by integrating the Maldives Instant Payment System 'Favara' with India's UPI.

The Maldives Monetary Authority (MMA) announced the go-live on July 30, 2026.

How It Works

People in the Maldives can now send money directly to UPI-enabled bank accounts in India using their mobile banking apps. Transfers are initiated in Maldivian Rufiyaa (MVR) and credited in Indian Rupees (INR) within seconds.

Two Maldivian banks — Bank of Maldives Plc and Maldives Islamic Bank Plc — are participating in the initial phase. Permitted categories include family maintenance and gift-related remittances.

The Backstory

NPCI International Payments Limited (NIPL) and MMA signed the integration agreement in July 2025. After that, testing, certification, bank onboarding, and live validation were completed in just 10 days — an unusually fast rollout.

The corridor was built through collaboration between the MMA, RBI, NIPL, and participating banks in both countries.

Why It Matters

India is one of the Maldives' largest trading partners and tourist sources. Thousands of Maldivian residents have family connections and financial obligations in India. This corridor eliminates the need for slow, expensive traditional remittance channels.

UPI now operates in seven countries. Cross-border UPI transactions grew 20 times in FY25 — from 37,060 to over 7.55 lakh. The Maldives corridor adds to an expanding network that already includes UAE, Singapore, Bhutan, Nepal, Sri Lanka, and Mauritius.

Future phases will add QR-based merchant payments for tourists and businesses.

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