In a strategic move to bolster its economy, the Maldives plans to introduce India’s RuPay payment system. This initiative aims to facilitate transactions in Indian rupees, thereby strengthening the Maldivian Rufiyaa and significantly reducing the nation’s annual import bill. The projected savings amount to nearly 50% of the $1.5 million spent on imports from India and China each year.
Amidst the flourishing relationship between the Maldives and India, the launch date for RuPay remains unannounced. “We are currently engaged in discussions with India to explore avenues for facilitating payments in rupees,” stated a Maldivian minister, highlighting ongoing efforts to enhance financial cooperation between the two nations.
RuPay, developed by the National Payments Corporation of India (NPCI), is India’s leading card payment network, accepted widely at ATMs, POS devices, and e-commerce platforms throughout the country. The introduction of RuPay in the Maldives is expected to bolster the local currency, the Maldivian Rufiyaa (MVR), addressing one of the administration’s top priorities.
Minister of Economic Development and Trade, Mohamed Saeed, emphasized the importance of this initiative, stating, “Addressing the dollar issue and reinforcing the MVR is a top priority for the current administration.” This sentiment echoes the commitment made by former President Ibrahim Mohamed Solih in August 2022, where he highlighted the ongoing efforts to operationalize RuPay in the Maldives to enhance bilateral travel, tourism, and economic links.
Furthermore, both India and China have agreed to support the Maldives in settling import payments in their respective currencies rather than relying on the US dollar. Saeed noted a recent meeting with Indian High Commissioner Munu Mahawar, during which Mahawar confirmed New Delhi’s support for the arrangement.
The move to integrate RuPay is part of a broader strategy to save nearly half of the annual import expenses from India and China. In July 2023, the Reserve Bank of India included the Maldives among 22 countries permitted to open Special Rupee Vostro Accounts (SRVAs) to promote bilateral trade in local currencies. This initiative aligns with efforts by NPCI International Payments Ltd (NIPL), NPCI’s international arm, which has been actively partnering with global banks and payment companies to extend the reach of UPI and RuPay.
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