The Maldives Monetary Authority (MMA) has announced plans to formulate an independent entity tasked with overseeing the overhaul of the country’s national payment system, in a bid to modernise financial infrastructure and enhance the efficiency of monetary transactions.
The initiative, according to the central bank, is intended to facilitate secure, streamlined and cost-effective financial services for individuals and businesses. This development follows the signing of a bilateral agreement with NPCI International Payments Limited of India, under which the MMA will pursue integration of the Maldives National Instant Payment System, known as Favara, with India’s Unified Payments Interface. In a statement, MMA said the collaboration is designed to simplify cross-border financial exchanges and improve transactional ease for citizens of both nations.
Driving this effort forward are plans to establish a new company, 'Payment Maldives'. Charged with implementing a nationally and internationally recognised payments framework, the entity will coordinate institutional modernisation and deploy technology-driven services. The central bank highlighted the success of similar operational models in other jurisdictions and confirmed that revisions to the country’s legal framework are under way to support the transition.
Deployment of Favara’s integration with UPI, according to the central bank, is scheduled to occur in two phases. The first, slated for 2026, will allow users in the Maldives and India to conduct real-time peer-to-peer money transfers. The second phase will introduce QR code functionality to facilitate business transactions. Both phases are structured to support the use of domestic currencies, with the aim of ensuring frictionless interoperability between systems.
As part of these modernisation efforts, the MMA is also developing a National QR Code Standard to unify formats used by banks and payment service providers. The measure is expected to strengthen Favara adoption and further streamline international transactions.
MMA officials said they anticipate that the initiative will not only simplify financial activity for consumers and enterprises, but also advance broader economic objectives, chief among them expanding financial inclusion and reducing cash dependence across the Maldivian economy.