Following a recent agreement between India's NPCI International Payment Limited (NIPL) and the Maldives Monetary Authority (MMA), the Unified Payments Interface (UPI) is poised to become operational in the Maldives. According to Foreign Secretary Vikram Misri, the implementation agreement has been signed, and the final technical work is underway. Once this integration is complete and the MoU is operationalized, Maldivian citizens will be able to utilize UPI for transactions.
The introduction of UPI to the Maldives is expected to significantly boost both tourism and retail trade. This initiative will facilitate easier transactions for Indian tourists, who constitute a significant portion of the Maldivian tourism market. Tourism contributes significantly to the Maldives' GDP and foreign currency earnings.
The UPI agreement was one of eight key agreements exchanged between the Maldives and India during Indian Prime Minister Narendra Modi's recent visit to the island nation. This visit marks the first since the beginning of Modi's third term in office. The agreements were signed in the presence of President Dr. Mohamed Muizzu and Prime Minister Modi, with India's External Affairs Minister Dr. S. Jaishankar signing on behalf of the Indian government.
In addition to the UPI agreement, the signed agreements included: * Terms of Reference for the India-Maldives Free Trade Agreement (FTA). * An agreement for a USD 565 million Line of Credit to the Maldives through India's Exim Bank. * An Amendatory Agreement on reducing annual debt repayment obligations of the Maldives on Indian Government-funded Lines of Credit. * A Memorandum of Understanding (MoU) on cooperation in the field of Fisheries and Aquaculture. * An MoU between the Indian Institute of Tropical Meteorology (IITM) and the Maldives Meteorological Services (MMS). * An MoU on cooperation in sharing successful digital solutions implemented at population scale for Digital Transformation. * An MoU on the recognition of the Indian Pharmacopoeia (IP) by the Maldives.
Prime Minister Modi also announced that India would provide a Line of Credit of USD 565 million to the Maldives, reinforcing the commitment to strengthen regional maritime cooperation. This credit line will support infrastructure development projects aligned with the priorities of the Maldivian people.
Both leaders have expressed optimism about the future of India-Maldives relations. President Muizzu affirmed his commitment to strengthening cooperation with India across various sectors, while PM Modi emphasized the deep-rooted ties between the two nations. The leaders also addressed concerns about regional security, emphasizing the shared responsibility for peace and stability in the Indian Ocean.
The implementation of UPI in the Maldives represents a significant step forward in strengthening economic ties and facilitating seamless transactions between the two countries. This initiative, along with other agreements and collaborations, underscores the commitment to a strong and mutually beneficial partnership between India and the Maldives.
