Maldives President Mohamed Muizzu announced the introduction of India’s Unified Payment Interface (UPI) in the country on Sunday to enhance financial transactions and boost the economy.
The decision follows a recommendation from the Cabinet and is expected to promote financial inclusion, improve transaction efficiency, and upgrade digital infrastructure. In a statement, the President’s office said that the Cabinet thoroughly reviewed a proposal from the Minister of Economic Development and Trade before reaching this decision.
To facilitate the implementation of UPI, the Muizzu government will establish a consortium that includes banks, telecom companies, state-owned enterprises, and fintech firms operating in the country. TradeNet Maldives Corporation Limited has been appointed as the leading agency for the consortium.
Digital public infrastructure
India is also promoting digital public infrastructure developed in the country, including the digital offerings of UPI, Aadhaar, the Modular Open Source Identity Platform (MOSIP) and DigiLocker, among others, worldwide. According to the Ministry of External Affairs (MEA), India’s push for digital public infrastructure (DPI) aims to further digital transformation in both India and other countries and to enhance cooperation in ecosystem-centric digital initiatives, such as India Stack.
This announcement came less than a month after Muizzu met with Prime Minister Narendra Modi during his visit to India, where they reviewed the entire gamut of bilateral ties. During Muizzu’s official visit, the two sides had agreed to share expertise on the implementation of digital and financial services and to cooperate in the domain of Digital Public Infrastructure (DPI) through the launch of UPI, Unique Digital Identity, Gati Shakti Scheme and other digital services.
India-Maldives Cooperation
Earlier this month, the Maldives President had expressed his appreciation for the decision of the Government of India to extend support in the form of USD 400 million and INR 30 billion as a bilateral currency swap agreement, instrumental in tackling the ongoing financial challenges faced by the Maldives.
During Muizzu’s India visit, the two sides had also agreed to implement further measures to support Maldives in addressing its financial challenges. The leaders acknowledged that it was an opportune time for both sides to chart a new framework for cooperation with an aim to comprehensively transform the bilateral relationship into a Comprehensive Economic and Maritime Security Partnership.
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