Favara-UPI service to expand to all banks, reverse transfers in coming months, says MMA Deputy Governor

Maldives Monetary Authority (MMA) Deputy Governor Aishath Asna Hamdi has said the newly launched Favara-UPI cross-border payment service will be expanded to all banks in the Maldives, while work is already underway to enable money transfers from India to the Maldives in the coming months.

Speaking at the launch ceremony of the Favara-UPI Cross-Border Integration, Asna described the service as a major step towards making international remittances faster, more secure and more affordable for customers.

"From today, customers in the Maldives can send money to India instantly, securely, and at lower cost through the digital channels of our banks," she said.

According to Asna, the service is the result of a partnership between the Maldives Monetary Authority and NPCI International Payments Limited (NIPL). She noted that the agreement between the two institutions was signed on 25 July last year, and the service has gone live within a year.

"We are proud to stand here within a year, ready to go live. Indeed, it is a clear reflection of the commitment and efficiency of everyone involved," she said.

The service is currently available through Maldives Islamic Bank (MIB) and Bank of Maldives (BML).

Asna said the central bank intends to bring all banks in the Maldives onto the platform during future phases, while also integrating other payment service providers.

"We hope to bring all banks in the Maldives on board in the phases ahead, along with other payment service providers. This will make Favara stronger and more useful for our customers," she said.

She added that while the current phase supports transfers from the Maldives to India, work has already begun to introduce the reverse payment corridor.

"For now, transfers will move from the Maldives to India. Work is already under way to enable transfers in the other direction within the coming months, so that customers can send money seamlessly between the two countries from their MVR or INR accounts," she said.

Highlighting the social importance of the service, Asna said every remittance represents a personal story and that the new payment link will make a meaningful difference to people's lives.

"This service will matter most to people. Behind every remittance lies multiple human stories — be it a parent supporting a child's education, a relative helping with medical care, or a simple act of care across distance. Our easing our foreign expatriates sending their hard-earned income across the border," she said.

She noted that India remains an important destination for many Maldivians and said faster and more reliable money transfers would make the process easier for families.

"By making these transfers faster and more reliable, we ease a small but meaningful part of that journey," she said.

Asna also described the initiative as an important step towards greater financial inclusion, saying lower-cost and transparent remittance channels would allow more people to access formal financial services instead of relying on informal or expensive methods.

"The benefits of digital finance should reach as many people as possible," she said.

She added that the payment integration would also strengthen the already established economic relationship between the Maldives and India by supporting trade, the movement of people and deeper financial cooperation across South Asia.

Looking ahead, Asna said the partnership would be expanded to include QR-based merchant payments, allowing customers in both countries to make payments to businesses using their domestic payment applications.

"Today is only the beginning. We will continue to strengthen Favara's cross-border reach and explore links with other systems, so that sending and receiving money becomes easier, more affordable, and more dignified for everyone," she said.

During her remarks, the Deputy Governor thanked MMA Governor Ahmed Munawar for his leadership and vision in developing a modern and internationally connected payment system.

She also expressed appreciation to Foreign Minister Iruthisham Adam, Indian High Commissioner G. Balasubramanian, the Reserve Bank of India, NPCI International Payments Limited, Maldives Islamic Bank, Bank of Maldives, Payment Maldives, and the teams within the Maldives Monetary Authority for their collaboration in delivering the project within a year.