President Mohamed Muizzu has announced plans to introduce India's Unified Payment Interface (UPI) in the island nation, following a Cabinet recommendation on Sunday. This development comes after India agreed to share its expertise in digital and financial services, including the implementation of UPI and Unique Digital Identity, during Muizzu’s recent state visit to India.
This also means that payments just got a whole lot easier for the Indians traveling to the Maldives. Since Maldives is a popular destination for Indian tourists. With UPI integration, Indians visiting the Maldives can easily make payments using UPI apps like Google Pay, PhonePe, and Paytm without relying on cash or foreign currency exchanges, making travel more convenient.
The Maldivian President’s decision is expected to bring substantial benefits to the country's economy, including increased financial inclusion, enhanced efficiency in financial transactions, and improved digital infrastructure, according to a statement released by his office. Also, Indian citizens and businesses in the Maldives will have seamless cross-border payment options, promoting digital transactions and reducing the reliance on traditional banking methods for remittances or trade-related payments.
President Muizzu has also decided to set up a consortium to facilitate the introduction of UPI in the Maldives. This consortium will include banks, telecom companies, state-owned enterprises, and fintech companies operating in the country.
TradeNet Maldives Corporation Limited, a leading agency known for its expertise, has been appointed to lead the consortium, the statement added. Additionally, an interagency coordination team, comprising the Ministry of Finance, the Ministry of Homeland Security and Technology, and the Maldives Monetary Authority, will be established to oversee the Ministry of Economic Development and Trade in implementing UPI in the Maldives.
