• Maldives President Mohamed Muizzu has decided to introduce India's Unified Payment Interface (UPI) to boost the Maldivian economy.
• A consortium, including banks, telecom companies, and fintech firms, will facilitate the UPI's introduction in the Maldives.
• The decision follows an MoU signed between Maldives and India, aimed at implementing the UPI in the island nation.
• The introduction of UPI in the Maldives signifies strengthening diplomatic and financial ties with India, fostering digital cooperation.

In a significant move that is expected to boost the Maldivian economy, President Mohamed Muizzu has decided to introduce India's Unified Payment Interface (UPI) in the Maldives.

The decision, announced on October 21, is a result of a comprehensive discussion and understanding of a paper submitted by the Minister of Economic Development and Trade at a cabinet meeting. The UPI, a system that enables financial transactions through mobile phones, is expected to bring about a sea change in the Maldivian economy.

The benefits are manifold, including increased financial inclusion, improved efficiency in financial transactions, and enhanced digital infrastructure. This move is not just a step towards digitization but also a significant stride towards financial inclusion, ensuring that more people have access to financial services.

Consortium and Coordination Team for UPI Implementation

To facilitate the introduction of UPI in the Maldives, President Muizzu has decided to set up a consortium. This consortium will include banks, telecom companies, state-owned companies, and fintech companies operating in the country. TradeNet Maldives Corporation Limited, a leading agency with proven expertise, has been appointed as the consortium's leading agency.

In addition to the consortium, an inter-agency coordination team has been constituted. This team comprises the Ministry of Finance, Ministry of Homeland Security and Technology, and The Maldives Monetary Authority. Their role will be to lead the Ministry of Economic Development and Trade in overseeing the establishment of the UPI in the Maldives.

Diplomatic Relations and Historical Precedence

This decision comes on the heels of an MoU signed between Maldives and India in August this year, during the visit of External Affairs Minister S. Jaishankar. The MoU was aimed at implementing the UPI in the island nation. The UPI, operated by the National Payments Corporation of India, is already operational in several international locations, including UAE, Sri Lanka, France, Malaysia, Singapore, Nepal, the UK, and Mauritius.

The introduction of UPI in the Maldives is a significant development in the context of diplomatic relations between the two countries. Last year, diplomatic tensions had escalated over remarks made by some Maldives ministers against Indian PM Narendra Modi 's visit to Lakshadweep. However, this move signifies strengthening diplomatic and financial ties with India, fostering digital cooperation.