SUMMARY
- Maldives President Mohamed Muizzu has taken “necessary steps” to implement India’s UPI across the island nation.
- Muizzu established a consortium on Sunday to launch UPI in Maldives.
- Muizzu encouraged the involvement of the nation’s financial institutions, telecom providers among others.
Maldives President Mohamed Muizzu has taken “necessary steps” to implement India’s Unified Payments Interface (UPI) across the island nation, with plans to significantly improve the Maldivian economy.
Muizzu established a consortium on Sunday to launch UPI in Maldives, appointing TradeNet Maldives Corporation Limited as its primary agency, as reported by the President’s Office.
Additionally, Muizzu encouraged the involvement of the nation’s financial institutions, telecom providers, state-owned entities, and technology and fintech companies in this initiative.
He “decided to take the necessary steps” on the recommendation of the Cabinet, according to the official statement. “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,” the statement further read.
Muizzu also formed an inter-agency comprising the Ministry of Finance, Ministry of Homeland Security and Technology, and the Maldives Monetary Authority to assist the Ministry of Economic Development and Trade oversee the introduction of UPI in the Maldives.
The memorandum of understanding for UPI’s introduction in Maldives was signed during the three-day visit of External Affairs Minister S Jaishankar to the country in August.
Earlier in the month, the Maldives issued a new regulation for foreign currency, restricting the types of transactions permissible in foreign money and mandating foreign currency exchange requirements for tourism businesses and banks.
The economy of the Maldives seems to be suffering following President Muizzu’s decision to advise Indian tourists to steer clear of the beautiful islands as part of his ‘India Out’ campaign last year.
Muizzu was elected President with the ‘India-out’ campaign and pushed for India’s withdrawal of its military forces stationed in the Maldives, by May of this year.
However, Muizzu has since moderated anti-India stance, making a visit to India on his initial state visit to the country earlier this month. Tourism stands as the primary economic engine of the Maldives, accounting for almost 30% of the Gross Domestic Product (GDP) and more than 60% of the foreign exchange.
