- President Muizzu is bringing India’s UPI payment system to the Maldives to boost the economy.
- TradeNet Maldives Corporation will lead a group managing the UPI introduction, with banks, telecoms, and fintech companies involved.
- A government team, including the Finance Ministry, is overseeing the process.
- UPI is expected to improve banking access, speed up transactions, and enhance digital services.
- This move follows a recent agreement with India, showing improved relations.
Maldives President Mohamed Muizzu has announced a major step to help the country’s economy by introducing India’s Unified Payments Interface (UPI). UPI, developed by the National Payments Corporation of India (NPCI), allows quick and easy money transfers between banks using mobile phones. This move is expected to make financial transactions faster and more convenient for people in the Maldives.
UPI Consortium Set Up
To manage the introduction of UPI, President Muizzu has set up a group led by TradeNet Maldives Corporation Limited. This group, or consortium*, will bring together Maldivian banks, telecom companies, state-owned enterprises, and financial technology (fintech) firms to help roll out UPI nationwide.
The President’s Office confirmed that this decision was based on recommendations from the Cabinet. By introducing UPI, the Maldives aims to improve financial inclusion—meaning more people can access banking services—while also making transactions faster and more efficient.
*A consortium is a group of organizations or companies that come together to work on a common project or achieve a shared goal. It allows them to pool resources and expertise for mutual benefit.
Government Agencies to Oversee Implementation
An inter-agency team has also been formed to help launch UPI. This team includes officials from the Ministry of Finance, the Ministry of Homeland Security and Technology, and the Maldives Monetary Authority. They will work with the Ministry of Economic Development and Trade to ensure UPI is successfully implemented in the Maldives.
Agreement with India
The introduction of UPI was agreed upon during Indian External Affairs Minister S. Jaishankar’s visit to the Maldives in August. This move highlights the strong cooperation between India and the Maldives, especially in financial and economic matters.
Addressing Currency Issues
This new initiative comes at a time when the Maldives is dealing with currency challenges. Earlier this month, the government introduced rules to limit certain foreign currency transactions and required banks and tourism businesses to exchange foreign currencies through approved channels. These changes aim to stabilize the nation’s economy and deal with the shortage of U.S. dollars.
Also check: Currency Converter – Exchange Rate Today
Tourism is the main driver of the Maldivian economy, contributing about 30% of the country’s GDP and generating over 60% of its foreign currency earnings. However, recent calls for Indian tourists to avoid visiting the Maldives, in response to President Muizzu’s past ‘India Out’ campaign, have affected tourism.
Improving Relations with India
President Muizzu had campaigned last year with an ‘India Out’ message, asking India to withdraw its military personnel from the Maldives. However, he has softened this stance and is now working to strengthen ties with India. His first state visit to India earlier this month reflects his efforts to repair relations, and the UPI agreement is part of this positive shift.
