India is set to expand its digital payment footprint by introducing Unified Payments Interface (UPI) services in the Maldives. This move is aimed at strengthening economic ties between the two nations and promoting digital transactions.
The Reserve Bank of India (RBI) and the Maldives Monetary Authority (MMA) have signed an agreement to enable UPI transactions in the island nation. This partnership will allow Indians traveling to the Maldives to make payments using their UPI-enabled bank accounts, eliminating the need for foreign currency exchange.
The introduction of UPI in the Maldives is expected to boost tourism and trade between the two countries. Indian tourists, who account for a significant share of visitors to the Maldives, will find it more convenient to make payments, while Maldivian businesses will benefit from increased footfall and revenue.
The UPI system has revolutionized digital payments in India, with over 5 billion transactions recorded in July alone. Its expansion into the Maldives marks a significant milestone in India’s efforts to promote digital payments globally.
The agreement also underscores the growing cooperation between India and the Maldives in the financial sector. The two nations have been working closely to strengthen economic ties, with India providing financial assistance and technical support to the Maldives.
The introduction of UPI services in the Maldives is expected to be a win-win for both countries, promoting digital transactions, tourism, and economic growth.