The Maldives Monetary Authority (MMA) has announced the creation of an independent institution to lead the transformation of the nation’s payment ecosystem, as part of a broader strategy to modernise financial infrastructure and improve the efficiency of monetary transactions across the country.
According to the central bank, the upcoming reforms aim to deliver secure, seamless, and cost-effective financial services for both consumers and businesses. This announcement follows the recent bilateral agreement signed with India’s NPCI International Payments Limited, under which the MMA plans to link the Maldives’ National Instant Payment System (Favara) with India’s Unified Payments Interface (UPI).
In a statement, MMA said the collaboration is set to enhance cross-border payment capabilities, making it easier for individuals and enterprises in both countries to carry out transactions with greater convenience and lower costs.
To facilitate this transformation, the MMA plans to launch a new company named ‘Payment Maldives’. The entity will be tasked with implementing a nationally and internationally compatible payments framework, coordinating modernisation efforts, and rolling out technology-driven financial services. The MMA noted that this model is inspired by similar successful initiatives in other countries and confirmed that legal reforms are underway to support its establishment and operations.
The Favara-UPI integration is expected to roll out in two phases. The first phase, targeted for 2026, will enable real-time person-to-person transfers between users in the Maldives and India. The second phase will introduce QR code-based transactions, particularly geared toward facilitating merchant payments. Both phases will support the use of local currencies, ensuring smooth and interoperable cross-border transactions.
In parallel with these developments, the MMA is working on a National QR Code Standard, which will standardise the QR formats used by banks and other payment service providers. This move is expected to accelerate Favara adoption and enhance the efficiency of international payment processes.
Officials at the central bank emphasized that the overall initiative is not only aimed at simplifying financial services, but also at advancing key national economic goals. These include widening financial inclusion, reducing the economy’s reliance on cash, and promoting a more digitally empowered financial ecosystem.
By introducing a dedicated institutional framework and modern digital infrastructure, the Maldives aims to establish a future-ready financial system that can support the growing demands of individuals, businesses, and the broader economy.