Favara-UPI Cross-Border Payment Corridor Goes Live Between Maldives and India

Key Highlights:

• The Favara-UPI cross-border payment corridor went live between Maldives and India on July 30, 2026.
• This integration enables real-time Person-to-Person (P2P) transfers from Maldivian Rufiyaa (MVR) to Indian Rupees (INR).
• The initial phase involves Bank of Maldives Plc and Maldives Islamic Bank Plc for transfers to UPI-enabled bank accounts in India.
• Permitted remittance categories include family maintenance and gift-related transfers.
• UPI is now accepted in nine countries globally, facilitating seamless payments for Indian travelers.

Detailed Insights:

• The integration marks a transformative milestone in digital financial connectivity and bilateral economic cooperation between the two nations.
• It allows individuals in Maldives to initiate transfers using their mobile banking applications and the Favara payment rail.
• The implementation reflects close collaboration between the Maldives Monetary Authority (MMA), Reserve Bank of India (RBI), and NPCI International Payments Limited (NIPL).
• The agreement for this integration was executed between NIPL and MMA in July 2025.
• Future phases of this collaboration will introduce additional cross-border payment use cases, including QR-based merchant payments.

Key Concepts Involved:

• Favara: The instant payment system of the Maldives, enabling real-time fund transfers.
• Unified Payments Interface (UPI): India's instant real-time payment system developed by National Payments Corporation of India (NPCI).
• NPCI International Payments Limited (NIPL): The international arm of NPCI, responsible for the global expansion of UPI.