Amidst escalating bilateral relations between India and the Maldives, the island nation has set its sights on introducing India’s renowned RuPay service. This move is expected to significantly enhance the convenience of financial transactions between the two countries. Although the official launch date remains undisclosed, discussions are underway to explore avenues for facilitating payments in Indian rupees, a development that aligns with the Maldivian government’s priority of reinforcing the Maldivian Rufiyaa against the US dollar.
RuPay, a payment network developed by the National Payments Corporation of India (NPCI), has gained widespread acceptance across India, with its reach extending to ATMs, POS devices, and e-commerce platforms. Its implementation in the Maldives will not only streamline financial transactions but also contribute to the growth of bilateral trade and tourism, fostering closer economic ties between the two nations.
In August 2022, then-President of the Maldives, Ibrahim Mohamed Solih, welcomed the initiative to operationalize RuPay card usage in the Maldives and expressed willingness to consider further measures to boost travel, tourism, and economic interconnections. This announcement aligns with the growing trend of countries exploring alternative payment solutions to reduce reliance on the US dollar for international trade.
The Maldives has witnessed a surge in partnerships between local banks and payment companies with NPCI International Payments Ltd (NIPL), the international arm of NPCI, to facilitate the acceptance of UPI and RuPay in various forms. This collaboration underscores the growing global recognition of India’s digital payment infrastructure and its potential to enhance cross-border transactions.
India’s support for the implementation of RuPay in the Maldives further cements the strong bond between the two countries. The move is expected to result in significant savings for the Maldives, with projections indicating a potential reduction of almost 50% in the annual import bill of $1.5 million from India and China. The Maldives’ efforts to promote bilateral trade in local currencies are a testament to its commitment to strengthening economic ties and fostering regional cooperation.
