Maldives President Mohamed Muizzu has announced the introduction of India’s Unified Payments Interface (UPI) in the archipelago, a move aimed at significantly boosting the local economy. Developed by the National Payments Corporation of India (NPCI), UPI facilitates instant real-time payments and inter-bank transactions via mobile phones. Muizzu established a consortium to implement UPI in the country and appointed TradeNet Maldives Corporation Limited as the leading agency.
The president emphasized the importance of collaboration among various sectors, encouraging participation from banks, telecom companies, state-owned enterprises, and fintech firms in the consortium. This decision follows recommendations from the Cabinet, indicating strong governmental support for enhancing the nation’s financial infrastructure.
According to a press release from the President’s Office, the introduction of UPI is expected to yield substantial benefits for the Maldivian economy, including improved financial inclusion, more efficient transaction processes, and a stronger digital infrastructure. To ensure effective implementation, Muizzu formed an inter-agency coordination team comprising the Ministry of Finance, the Ministry of Homeland Security and Technology, and the country’s Monetary Authority.
The agreement to adopt UPI was signed during External Affairs Minister S. Jaishankar’s official visit to the Maldives in August. This development comes at a time when the Maldivian economy is facing challenges, including new foreign currency regulations that limit transactions in foreign currencies and impose exchange controls on tourism establishments and banks.
Despite previous tensions during Muizzu’s “India Out” campaign, where he called for the withdrawal of Indian military personnel, he has since softened his stance, visiting India on his first state visit earlier this month. With tourism accounting for nearly 30% of the Maldives’ GDP and over 60% of foreign exchange, the successful introduction of UPI could play a crucial role in revitalizing the economy.