Favara–UPI corridor links Maldives and India
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The Maldives Monetary Authority announced on 30 July 2026 that its instant payment system, Favara, is now linked with India’s UPI, the Finance Ministry said on 31 July. People in the Maldives can send money in real time from their mobile banking apps to UPI-enabled bank accounts in India. Payments start in Rufiyaa and arrive in Rupees.
- Released
- 31 Jul 2026, Finance Ministry
- Go-live
- 30 Jul 2026, announced by the Maldives Monetary Authority (MMA)
- Systems
- Favara (Maldives) and UPI (India)
- Currency
- sent in Maldivian Rufiyaa (MVR), credited in Indian Rupees (INR)
- First banks
- Bank of Maldives Plc and Maldives Islamic Bank Plc
- Agreement
- NIPL and MMA, July 2025
The Favara-UPI corridor: what happened?
Many families send money between the Maldives and India. A direct link between the two instant payment systems makes such transfers quick and simple. It is also a practical piece of India’s Neighbourhood First outreach.
- The first phase allows person-to-person (P2P) transfers only.
- Permitted uses: family maintenance remittances and gift remittances.
- The RBI, NPCI International Payments Limited (NIPL) and the MMA worked together.
- Testing, certification and onboarding were done in an accelerated 10-day timeline.
- Later phases will add QR-based merchant payments.
Where else does UPI work?
- The release lists nine countries that accept UPI: Cambodia, Singapore, the UAE, France, Mauritius, Nepal, Bhutan, Qatar and Sri Lanka.
- NIPL is NPCI International Payments Limited, which signed the Favara-UPI agreement with the MMA in July 2025.
Why does the Favara-UPI corridor matter?
- Neighbourhood: Ties people in the Maldives and India through daily money flows.
- Digital public infrastructure: Shows UPI linking with another country’s payment rail.
What can Prelims ask on the Favara-UPI corridor?
- Favara: Maldives Instant Payment System; linked to UPI on 30 July 2026.
- Agreement between NIPL and MMA: July 2025.
- First phase: P2P transfers via Bank of Maldives and Maldives Islamic Bank.
How to use this in Mains
- As per PIB (2026-07-31): maldives Monetary Authority announced the go-live of integration between its instant payment system Favara and UPI on 30 Jul 2026, enabling real-time remittances to Indian UPI accounts.
- Cheaper remittances for Maldivians and Indians alike are Neighbourhood First in a form people feel.
Quotable data pointMaldives Monetary Authority announced the go-live of integration between its instant payment system Favara and UPI on 30 Jul 2026, enabling real-time remittances to Indian UPI accounts.
PIB: Finance: Favara–UPI corridor, 31 Jul 2026
Exam angle
Prelims: UPI cross-border links.
Practice MCQs
Original practice questions (not PYQs).
"Favara", recently linked with India's UPI, is the instant payment system of
Answer (c) & explanation
PIB (Finance), 31 Jul 2026.
Questions students ask about this
What is Favara?
The Maldives Instant Payment System, run under the Maldives Monetary Authority, now linked with India's UPI.
Who can use the new corridor?
Customers of Bank of Maldives Plc and Maldives Islamic Bank Plc can send money from their mobile banking apps to UPI-enabled accounts in India.
What is coming next?
Later phases will add QR-based merchant payments and other cross-border services.
Keep studying
Go deeper
Official source: PIB: Finance: Favara–UPI corridor, 31 Jul 2026
facts from cited sources only; faculty review pending