Favara-UPI Cross-Border Payment Corridor Goes Live Between Maldives and India
Issued by Ministry of Finance
Read or download the official PDF of this gazette notification issued by the Ministry of Finance on 31st July 2026. Classified under Press Release.
Executive Summary & Key Takeaways
Executive Summary The Favara-UPI cross-border payment corridor between the Maldives and India officially went live on July 30, 2026, following a collaboration agreement signed in July 2025. This integration enables real-time person-to-person (P2P) fund transfers from the Maldives to UPI-enabled bank accounts in India via mobile banking applications. The service currently supports specific remittance categories, including family maintenance and gifts, through two participating Maldivian banks.
Key Points / Main Content
Transaction Mechanism
- Enables real-time fund transfers from individuals in the Maldives to beneficiaries in India.
- Transactions are initiated in Maldivian Rufiyaa (MVR) and credited in Indian Rupees (INR) through the UPI network.
- Payments are processed using the Favara payment rail integrated with India’s Unified Payments Interface (UPI).
Participation and Access
- Initial participation is limited to two local Maldivian banks: Bank of Maldives Plc and Maldives Islamic Bank Plc.
- Users can initiate transfers directly through the mobile banking applications of these participating institutions.
Permitted Remittance Categories
- Family-maintenance-related remittances (permitted under both Foreign Inward and Foreign Outward Remittance).
- Gift-related remittances (permitted under Foreign Outward Remittance).
Collaborative Framework
- The project was implemented through the joint efforts of the Maldives Monetary Authority (MMA), Reserve Bank of India (RBI), and NPCI International Payments Limited (NIPL).
- The corridor achieved full operational readiness following an accelerated 10-day timeline for testing, certification, and live validation.
Future Developments
- Subsequent phases intend to introduce QR-based merchant payments.
- Additional innovative digital payment services are planned to further strengthen bilateral economic ties.
Impact Analysis
Individual Users in the Maldives Impact They gain the ability to send money to India instantly and digitally without traditional manual remittance hurdles. Action Required Use the mobile banking applications of Bank of Maldives Plc or Maldives Islamic Bank Plc to initiate transfers.
Bank of Maldives Plc and Maldives Islamic Bank Plc Impact These institutions serve as the primary conduits for the initial phase of the cross-border corridor. Action Required Maintain the Favara payment rail integration and manage P2P transfer services for their customers.
Beneficiaries in India Impact They can receive real-time credits in INR directly into their bank accounts from senders in the Maldives. Action Required Must ensure they have a UPI-enabled bank account to receive funds.
Maldives Monetary Authority (MMA) and NPCI International Payments Limited (NIPL) Impact These bodies are responsible for the regulatory and technical oversight of the integration. Action Required Continue collaboration to roll out future phases, including QR-based merchant payments and other digital services.