In an effort to further bolster the relations between India and Maldives, President Mohamed Muizzu on Sunday, announced the introduction of India’s Unified Payment Interface (UPI) in the country. The decision to take the necessary steps to introduce the UPI in Maldives was made after the recommendation of the Cabinet.
Unified Payments Interface, commonly referred to as UPI, is an Indian instant payment system as well as protocol developed by the National Payments Corporation of India (NPCI) in 2016. It is also used on mobile devices to instantly transfer funds between two bank accounts. The success of UPI made it a soft power tool for India. It has became one of the most successful deep-tech financial innovations India has produced. The Payment Platform has so far been connected with the central banks and financial institutions from the Arab region, as well as a number of countries from south east asia including Singapore, Malaysia and Vietnam.
Muizzu’s efforts
It seems Mohamed Muizzu is now looking to get Maldives in the UPI system. The development comes after the Maldives President Mohamed Muizzu’s visit to India earlier this month. India and Maldives have agreed to exchange expertise in implementing digital and financial services. The two nations also worked on developing the Digital Public Infrastructure (DPI) through the launch of India’s Unified Payments Interface (UPI), Unique Digital Identity.
Plans to extend UPI in the Maldives were announced for the first time in August during External Affairs Minister S Jaishankar’s visit to the island nation. EAM S Jaishankar said that the move will make it easier for tourists to pay for things, boosting travel to the islands and helping the local economy.
He “decided to take the necessary steps” on the recommendation of the Cabinet, a press release said. “This move is expected to bring significant benefits to the Maldivian economy, including increased financial inclusion, improved efficiency in financial transactions, and enhanced digital infrastructure.”
UPI in Maldives
Muizzu on Sunday set up a consortium to introduce UPI in the country and appointed TradeNet Maldives Corporation Limited as its leading agency, according to a press release by the President’s Office. The president also suggested the participation of the country’s banks, telecom companies, state-owned companies and fintech companies in the consortium.
TradeNet Maldives Corporation Limited, a leading agency with proven expertise, has been appointed as the consortium’s leading agency, reported PTI, citing a statement released by President Muizzu’s office on Sunday.
The decision to implement UPI in Maldives was made after a thorough review of a report submitted by the Minister of Economic Development and Trade at a cabinet meeting. An interagency coordination team comprising the Ministry of Finance, the Ministry of Homeland Security and Technology and the Maldives Monetary Authority will oversee the establishment of the UPI in the Maldives.
The Maldivian economy has been suffering heavily due to their previous clash with India. Muizzu who had been elected at the back of his ‘India Out’ campaign was intent on facilitating China in place of India. But the ensuing damage to Maldives reputation and economy was not anticipated by the Muizzu regime. Thawing relations considerably, the Maldives President recently came to India for a meeting with Prime Minister Narendra Modi. This move to introduce the UPI system, will further the financial and diplomatic cooperation between the two countries, as well as providing a timely boost to Maldives’ stuttering economy.