The Unified Payments Interface (UPI), designed by the National Payments Corporation of India (NPCI), will soon be extended to the Maldives, as President Mohamed Muizzu has pushed for its rapid implementation in the island nation. The decision to take the required procedures to implement the UPI in the Maldives was made following the Cabinet's recommendation on Sunday, according to PTI. Earlier this month, during Maldives President Mohamed Muizzu's visit to India, the two countries agreed to share knowledge in the implementation of digital and financial services. The two countries also collaborated to establish the Digital Public Infrastructure (DPI) with the launch of India's Unified Payments Interface (UPI) and Unique Digital Identity.
Plans to expand UPI in the Maldives were first revealed in August, following External Affairs Minister S Jiashankar's visit to the island nation. According to EAM S Jaishankar, the measure will make it easy for tourists to pay for their purchases, increasing visits to the islands and benefiting the local economy. TradeNet Maldives Corporation Limited will spearhead the UPI implementation in Maldives. President Muizzu established a consortium to oversee the adoption of UPI payment systems in the Maldives. The consortium will include a variety of players, including banks, telecom companies, state-owned enterprises, and fintech firms operating in the country.
TradeNet Maldives Corporation Limited, a prominent agency with proven expertise, has been named the consortium's main agency, according to PTI, citing a statement issued by President Muizzu's office on Sunday. According to the announcement, the Maldivian President's decision is expected to have a substantial impact on the Maldivian economy, including increased financial inclusion, improved financial transaction efficiency, and enhanced digital infrastructure.
The decision to introduce UPI in the Maldives was decided following a thorough study of a report presented by the Minister of Economic Development and Trade during a cabinet meeting. An interagency coordination team composed of the Ministry of Finance, the Ministry of Homeland Security and Technology, and the Maldives Monetary Authority will manage the Maldives' UPI implementation. The decision comes about a month after India and the Maldives agreed to expand UPI in the island nation to make it easier for Indian tourists to make purchases in the Maldives. The measure will also serve as a significant step in strengthening Maldives' digital payments infrastructure.
