Maldives to Launch India's RuPay Service to Bolster Local Currency

By siliconindia  |  Friday, May 24, 2024

Maldives to Launch India's RuPay Service to Bolster Local Currency
The Maldives is gearing up to launch India's RuPay service, a move that is expected to strengthen the Maldivian Rufiyaa, announced Minister of Economic Development and Trade, Mohamed Saeed. RuPay, developed by the National Payments Corporation of India (NPCI), will mark its debut in the Maldives as the first global card payment network from India, with extensive acceptance at ATMs, POS devices, and e-commerce platforms across the country.
Speaking to state-run PSM News, Minister Saeed highlighted the significance of RuPay's introduction, stating, "The upcoming launch of India's RuPay service is anticipated to further bolster the Maldivian rufiyaa (MVR)". He underscored the administration's commitment to addressing currency challenges, stating that reinforcing the MVR is a top priority.
Although no official date has been announced for the launch, Minister Saeed conveyed that the card will be formally utilized for transactions denominated in rupees within the Maldivian territory. Discussions are ongoing with India to explore avenues for facilitating payments in rupees, he added.
The groundwork for RuPay's introduction was laid during the official visit of then President of Maldives, Ibrahim Mohamed Solih, to India in August 2022. A joint statement issued at the time underscored the commitment to operationalize the usage of RuPay Cards in the Maldives and explore measures to enhance bilateral travel, tourism, and economic inter-linkages.
In recent years, NPCI International Payments Ltd (NIPL), NPCI's international arm, has forged partnerships with banks and payment companies worldwide to accept UPI and RuPay. This initiative reflects India's efforts to expand its digital payment ecosystem beyond its borders.
However, the relations between the Maldives and India have faced challenges since President Mohamed Muizzu, perceived as pro-China, assumed power last November. The recent repatriation of over 80 Indian military personnel from three aviation platforms in the Maldives, at President Muizzu's insistence, has strained bilateral ties.
Despite geopolitical complexities, the launch of RuPay in the Maldives signifies a milestone in economic cooperation between the two countries. It is poised to facilitate seamless transactions, promote financial inclusion, and contribute to the strengthening of local currencies in the Maldives, while also deepening economic ties between India and the Maldives.

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