India and Maldives Partner to Launch UPI Payment Service

India and Maldives have taken a significant step in enhancing their bilateral relations by signing an agreement to introduce the Unified Payments Interface (UPI) in the Maldives. The Memorandum of Understanding (MoU), signed during External Affairs Minister S. Jaishankar’s three-day visit to the Maldives, marks the beginning of a digital payment revolution in the island nation, which is expected to positively impact its vital tourism sector.

Transforming Financial Inclusion with UPI

The UPI, developed by the National Payments Corporation of India (NPCI), is a real-time payment system that facilitates inter-bank transactions through mobile phones. India has witnessed the transformative power of UPI, with 40% of the world's real-time digital payments occurring in the country. This move aims to replicate that success in the Maldives, enhancing financial inclusion and bringing cutting-edge digital innovation to the region.

During a joint press conference with Maldivian Foreign Minister Moosa Zameer, Jaishankar highlighted the significance of this partnership. "With the signing of the MoU, we have taken the first step towards bringing this digital innovation to the Maldives, which will have a very positive impact on tourism," Jaishankar stated. Tourism is the backbone of the Maldivian economy, contributing nearly 30% of GDP and generating over 60% of foreign exchange. The introduction of UPI is expected to streamline transactions, making the Maldives an even more attractive destination for international tourists.

Strengthening Bilateral Ties and Regional Security

Jaishankar’s visit to the Maldives also served to reset and strengthen the bilateral relationship between the two nations, especially after the archipelago nation's pro-China President Mohamed Muizzu took office last year. India’s partnership with the Maldives has been built on mutual trust and respect, enabling both countries to swiftly and effectively respond to challenges, as evidenced by numerous high-impact projects jointly inaugurated during the visit.

Maldivian Foreign Minister Zameer expressed his appreciation for India’s continued support and development partnership. "India has always been one of our closest friends and a vital development partner. Our enduring friendship, built on mutual trust, continues to flourish," Zameer remarked.

Looking Ahead: Economic Cooperation and Security

The introduction of UPI is just one aspect of the deepening economic and strategic ties between India and the Maldives. Zameer proposed beginning negotiations on a Free Trade Agreement (FTA) with India, aiming to further liberalize trade and reduce business risks for both nations. Additionally, the two countries agreed to strengthen their security partnership, reflecting their commitment to ensuring the stability of the Indian Ocean region.

As global tensions rise, India remains a steadfast anchor of stability for its neighbors, providing economic and strategic support to the Maldives. India’s actions, guided by the philosophy of 'Sabka Saath, Sabka Vikas' (Together, we prosper), continue to foster a strong, collaborative partnership with the Maldives, paving the way for shared growth and development in the region.