Favara-UPI cross-border payments go live between Maldives and India
Synopsis
India's UPI has a new international corridor: the Maldives. With the Favara-UPI link going live after just a 10-day testing sprint, real-time rupee transfers from Maldivian bank accounts are now a reality — and QR-based merchant payments are already in the pipeline. UPI's global footprint now spans ten countries.
Key Takeaways
The Maldives Monetary Authority launched the Favara-UPI cross-border payment corridor on 31 July 2025 .
Transactions are initiated in Maldivian Rufiyaa (MVR) and credited to Indian recipients in Indian Rupees (INR) via UPI in real time.
Two banks are participating at launch: Bank of Maldives Plc and Maldives Islamic Bank Plc .
The integration agreement between NIPL and the MMA was signed in July 2025 , followed by an accelerated 10-day go-live process.
Future phases will add QR-based merchant payments and other digital payment services.
UPI is now accepted in 10 countries , including Singapore, UAE, France, and Sri Lanka.
The Maldives Monetary Authority (MMA) on 31 July 2025 announced the successful launch of the integration between the Maldives Instant Payment System, Favara, and India's Unified Payments Interface (UPI), according to a statement issued by the Finance Ministry. The service, which went live on Thursday, allows individuals in the Maldives to transfer funds in real time to beneficiaries in India — with transactions initiated in Maldivian Rufiyaa (MVR) and credited in Indian Rupees (INR) via UPI.
How the Service Works
At launch, the Favara-UPI corridor is operational through two participating Maldivian banks: Bank of Maldives Plc and Maldives Islamic Bank Plc. Customers of these institutions can initiate person-to-person (P2P) transfers directly to UPI-enabled bank accounts in India using their mobile banking applications and the Favara payment rail.
Permitted remittance categories include family-maintenance remittances under both Foreign Inward and Foreign Outward Remittance, as well as gift-related remittances under Foreign Outward Remittance.
What the Governments Said
'This marks a transformative milestone in cross-border digital financial connectivity and bilateral economic cooperation between the Maldives and India,' the Finance Ministry statement said. The implementation, it added, 'reflects close collaboration between the MMA, the Reserve Bank of India (RBI), NPCI International Payments Limited (NIPL), participating financial institutions, and other stakeholders in both countries.'
How It Came Together
The formal agreement for the Favara-UPI integration was executed between NIPL and the MMA in July 2025. What followed was an accelerated 10-day timeline covering testing, certification, onboarding, and live validation — after which the corridor achieved full operational readiness. The compressed timeline signals the priority both governments placed on getting the corridor live quickly.
What Comes Next
Subsequent phases of the collaboration are set to introduce additional cross-border payment use cases, including QR-based merchant payments and other digital payment services, further deepening economic and financial ties between the two nations. The Maldives corridor adds to UPI's growing international footprint: the interface is already accepted in nine countries — Cambodia, Singapore, United Arab Emirates, France, Mauritius, Nepal, Bhutan, Qatar, and Sri Lanka — enabling Indian travellers to make seamless payments abroad.
Point of View
And real traction will depend on whether remittance volumes justify expanding participation. UPI's growing international footprint also raises a structural question that regulators have not fully answered: as more corridors go live, how will India manage cross-border AML and fraud exposure at scale?
NationPress
31 Jul 2026
Frequently Asked Questions
What is the Favara-UPI integration between Maldives and India?
It is a cross-border real-time payment link between the Maldives Instant Payment System, Favara, and India's Unified Payments Interface (UPI), launched on 31 July 2025. It allows individuals in the Maldives to send funds directly to UPI-enabled bank accounts in India, with transactions converted from Maldivian Rufiyaa to Indian Rupees.
Which banks in the Maldives support Favara-UPI transfers?
At launch, Bank of Maldives Plc and Maldives Islamic Bank Plc are the two participating institutions. Customers of these banks can initiate transfers through their mobile banking applications using the Favara payment rail.
What types of remittances are permitted under the Favara-UPI corridor?
Permitted categories include family-maintenance remittances under both Foreign Inward and Foreign Outward Remittance, and gift-related remittances under Foreign Outward Remittance. Business or commercial transfers are not part of the initial scope.
How long did it take to launch the Favara-UPI corridor after the agreement was signed?
The integration agreement between NPCI International Payments Limited and the Maldives Monetary Authority was signed in July 2025. An accelerated 10-day process covering testing, certification, onboarding, and live validation followed before the corridor went live.
In how many countries is UPI now accepted internationally?
UPI is accepted in 10 countries, including Cambodia, Singapore, UAE, France, Mauritius, Nepal, Bhutan, Qatar, Sri Lanka, and now the Maldives, enabling both outbound Indian traveller payments and, increasingly, inbound remittance corridors.
