Favara-UPI Cross-Border Payment Corridor Launches Between Maldives and India
The Maldives Monetary Authority (MMA) announced the operational launch of the integration between Maldives' instant payment system 'Favara' and India's Unified Payments Interface (UPI) on July 30, 2026. This development establishes a real-time cross-border payment corridor that enables individuals in the Maldives to transfer funds directly to UPI-enabled bank accounts in India through their mobile banking applications.
Transaction Mechanics and Participation
The service facilitates transactions initiated in Maldivian Rufiyaa (MVR) that are credited to recipients in Indian Rupees (INR) through the UPI system. During the initial phase, two local Maldivian banks are participating: Bank of Maldives Plc and Maldives Islamic Bank Plc. Customers of these banks can initiate person-to-person (P2P) transfers using the Favara payment rail directly to Indian bank accounts.
Permitted Remittance Categories
The corridor specifically allows for family-maintenance-related remittances under both Foreign Inward and Foreign Outward Remittance categories, as well as gift-related remittances permitted under Foreign Outward Remittance regulations. This structured approach ensures compliance with cross-border financial regulations while facilitating legitimate transfer needs.
Implementation Background and Future Expansion
The integration agreement was executed between NPCI International Payments Limited (NIPL) and MMA in July 2025, with the implementation achieving full operational readiness following an accelerated 10-day timeline for testing, certification, onboarding, and live validation. The development represents close collaboration between MMA, the Reserve Bank of India (RBI), NIPL, participating financial institutions, and other stakeholders in both countries. Future phases of the collaboration will introduce additional cross-border payment use cases, including QR-based merchant payments and other innovative digital payment services.
UPI Global Footprint
The document notes that UPI is currently accepted in nine countries: Cambodia, Singapore, United Arab Emirates, France, Mauritius, Nepal, Bhutan, Qatar, and Sri Lanka, enabling Indian travelers to make seamless payments abroad through the UPI platform.