Favara-UPI Cross-Border Payment Corridor Goes Live Between Maldives and India

Favara-UPI Cross-Border Payment Corridor was announced by the Maldives Monetary Authority (MMA) on July 30, 2026, which allows Maldivians to make real-time money transfers from their mobile banking apps into UPI-compatible bank accounts in India. This implementation not only enhances cross-border remittances, but also showcases improved economic and technological integration between the two countries, hopefully paving the way for better digital payment innovations in the future.

What is the Favara-UPI Cross-border Payment Channel?

Favara-UPI is the integration of the Maldives Instant Payment System (Favara) with India’s Unified Payments Interface (UPI). As a result of the partnership, instant money transfers in real time can be done between the two nations. Users in Maldives can transfer money to their respective users in India using their bank accounts through their mobile banking application.

Users will be able to make transactions in Maldivian Rufiyaa (MVR) and the receiver will get it in a matter of seconds in Indian Rupees (INR). The launch of the service showcases a great step forward in the area of cross-border payments and shows how important the interoperable payment systems are becoming with each passing day.

Main Features of the Favara-UPI Launch

The newly opened payment corridor has several key benefits that enhance international remittances.

Instant Cross-Border Transfers

Now, people in the Maldives may send money instantly to their relatives in India, without using conventional transfer methods that may take longer time.

Mobile Banking-Based Product

Consumers would be able to effect transfers through stakeholders’ mobile banking applications with the use of Favara.

Currency Conversion

Initiated in the Maldivian Rufiyaa (MVR) via an UPI network, the transactions are converted automatically into Indian Rupees.

Banks Classifying for the Project

The first piloting stage of the project is going to involve the following banks,

Bank of Maldives Plc
Maldives Islamic Bank Plc

Consumers of these two financial institutions may immediately use the service.

Categories of Money Transfers Allowed

At first, the system helps only a few categories of payments as specified under the current regulations governing foreign exchange.

These are the,

• Remittances for family maintenance made through Foreign Inward Remittance
• Remittances for family maintenance made through Foreign Outward Remittance
• Remittances after gifting in Foreign Outward Remittance

This guarantees that the payment corridor is focused mainly on the real personal remittance needs while also abiding by the rules and regulations of payments.

Collaboration Behind the Initiative

The success of the Favara-UPI corridor is attributed to the cooperation of various financial institutions and regulatory bodies.

Key players in this effort are the,

• Maldives Monetary Authority (MMA)
• Reserve Bank of India (RBI)
• NPCI International Payments Limited (NIPL)
• The commercial banks involved
• All other financial institutions and payment ecosystem partners in both countries

Their collaboration accelerated the project’s journey from being approved to initiated.

From Agreement to Launch

In July 2025, an agreement was signed to integrate Favara with UPI between NPCI International Payments Limited (NIPL) and the Maldives Monetary Authority.

After the agreement, the testing, certification, onboarding banks, and live validation were finalized in an accelerated 10-day implementation timeline, after which the whole payment corridor became operational in July 2026.

This rapid launch shows how committed the two countries are to expanding digital financial infrastructure.