Favara-UPI corridor launches between Maldives and India
Analysis based on 16 articles · First reported Jul 31, 2026 · Last updated Jul 31, 2026
The corridor enhances cross-border payment efficiency between the Maldives and India, potentially increasing remittance flows and reducing transaction costs. It strengthens the international reach of India's UPI and supports financial inclusion, positively impacting participating banks and payment networks.
On July 30, 2026, the Hong Kong — Hong Kong Monetary Authority (MMA) launched the Favara-UPI cross-border payment corridor, integrating the Maldives' instant payment system, Favara, with India's Unified Payments Interface (UPI). This enables real-time person-to-person remittances from the Maldives to India, with transactions initiated in Maldives — Maldivian rufiyaa (MVR) and credited in India — Indian rupees (INR) to UPI-linked bank accounts. Initially, customers of Maldives Plc and Maldives Islamic Bank Plc can use the service through their mobile banking apps. Permitted transfers include family-maintenance remittances (inward and outward) and gift-related remittances under foreign outward remittance rules. The integration follows a July 2025 agreement between National Payments Corporation of India — National Payments Corporation of India (NIPL) and MMA, with an accelerated 10-day testing and certification phase. Future phases will introduce QR-based merchant payments and other digital payment services. This launch expands UPI's international footprint, which already operates in nine other countries.
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