MMA Raises Minimum Capital Requirements for Payment Service Providers

The Maldives Monetary Authority (MMA) has increased the minimum capital requirements for licensed payment service providers (PSPs) in a move aimed at strengthening their financial resilience and maintaining public confidence in the financial system.

The revised requirements were introduced through amendments to the Payment Services Regulation published in the Government Gazette today.

Under the amended regulation, providers licensed to offer electronic money issuance, payment transaction acquiring and remittance services must maintain minimum unimpaired capital of MVR 2 million at all times.

Meanwhile, the minimum unimpaired capital requirement for providers of payment initiation and account information services has been raised to MVR 1 million.

The changes are as follows:

• Electronic money issuing services: increased from MVR 500,000 to MVR 2 million

• Payment transaction acquiring services: increased from MVR 200,000 to MVR 2 million

• Remittance services: increased from MVR 200,000 to MVR 2 million

• Payment initiation services: increased from MVR 100,000 to MVR 1 million

• Account information services: increased from MVR 100,000 to MVR 1 million

The MMA said the higher capital thresholds are intended to ensure that licensed institutions have sufficient financial capacity to absorb potential losses and maintain safe, uninterrupted operations.

The amendments are also designed to promote financial soundness and responsible conduct among institutions operating in the sector, thereby safeguarding public trust in the country’s financial system.