India extending its UPI payment service to Maldives

India and Maldives have signed a partnership to roll out Unified Payments Interface (UPI) in Maldives. External Affairs Minister S Jaishankar said that the move will have a positive impact on the tourism sector.

The memorandum of understanding was signed between the National Payments Corporation of India and the Maldives’ economic development and trade ministry. This development follows Jaishankar’s three-day visit to the Maldives last Friday.

“Witnessed signing of MoU between (the) National Payments Corporation of India and (the) Ministry of Economic Development and Trade of Maldives on (the) introduction of (a) digital payment system in the Maldives,” he said in a post on X.

UPI is an instant real-time payment system to facilitate inter-bank transactions through mobile phones. It is developed by the National Payments Corporation of India (NPCI).   

After a “productive discussions” with his Maldivian counterpart Moosa Zameer, Jaishankar said, through UPI India has “revolutionised digital transactions”.

Stressing that it has taken financial inclusion in India to new levels, he said “Today 40 per cent of the world’s real-time digital payments take place in our country.” “We see this revolution, every day in our lives. I am pleased to note that with the signing of the MoU today, we have taken the first step towards bringing this digital innovation to Maldives,” he said.

“I wish the very best to stakeholders on both sides and hope that we will soon see the first UPI transaction here. I should mention that it will have a very positive impact on tourism,” he added.    

He further added, “India’s partnership with the Maldives is based on our deep desire to work together for each other’s welfare and interests. It is a partnership that has enabled us to always swiftly and effectively respond to challenges, as witnessed in the past.”

Addressing the joint press conference, Maldivian Foreign Minister Zameer said, “India has always been one of our closest friends and a vital development partner.” He said the “enduring friendship” was built on a foundation of mutual trust and respect and has continued to flourish over the years.