Maldives set to introduce India’s UPI: A major step towards economic transformation

President Muizzu introduces the UPI payment service to boost the Maldivian economy

In a significant move aimed at bolstering the Maldivian economy, President Mohamed Muizzu has announced plans to implement India’s Unified Payment Interface (UPI) in the Maldives. This decision comes as part of a broader strategy to enhance financial inclusion, streamline transactions, and develop the country’s digital infrastructure.

The President’s Office released a statement on Sunday detailing the decision, which was reached following an extensive discussion by the Cabinet on a proposal presented by the Minister of Economic Development and Trade. The Cabinet’s careful deliberation underscores the government’s commitment to ensuring a well-informed approach to this transformative initiative.

“To facilitate the introduction of UPI in the Maldives, President Muizzu has decided to establish a consortium involving banks, telecom companies, state-owned enterprises, and fintech firms operating within the nation,” the statement noted. This collaborative effort is expected to foster a robust ecosystem for digital payments.

Additionally, an inter-agency coordination team will be formed, comprising representatives from the Ministry of Finance, the Ministry of Homeland Security and Technology, and the Maldives Monetary Authority. This team will lead the efforts alongside the Ministry of Economic Development and Trade to ensure a smooth implementation of UPI in the Maldives.

The announcement follows a Memorandum of Understanding (MoU) signed between Maldives and India during External Affairs Minister S Jaishankar‘s visit to the island nation in August. The agreement aimed to facilitate the introduction of UPI, which has already proven successful in several international markets, including the UAE, Sri Lanka, Malaysia, Singapore, and the UK.

The adoption of UPI is expected to have a transformative impact on the Maldivian economy by enhancing the efficiency of financial transactions, making digital payments more accessible, and ultimately driving greater economic growth. As the Maldives looks to strengthen its digital infrastructure, the introduction of UPI marks a pivotal step toward realizing a more inclusive and technologically advanced financial ecosystem.

With this initiative, the Maldives not only strengthens its ties with India but also positions itself at the forefront of the digital payment revolution in the region, paving the way for a more integrated and innovative economic future.

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