External Affairs Minister S. Jaishankar said that India and the Maldives have signed an agreement to introduce the Unified Payments Interface (UPI) in the island nation.
The Memorandum of Understanding (MoU) was signed during Jaishankar’s three-day visit to the Maldives.
“Witnessed signing of MoU between (the) National Payments Corporation of India and (the) Ministry of Economic Development and Trade of Maldives on (the) introduction of (a) digital payment system in the Maldives,” he said in a post on X.
Developed by the National Payments Corporation of India (NPCI), UPI is a real-time payment system designed to facilitate inter-bank transactions through mobile phones. Jaishankar highlighted that UPI has transformed digital transactions in India, noting that 40% of the world’s real-time digital payments occur there.
Addressing a press conference with his Maldivian counterpart Moosa Zameer after their “productive discussions”, Jaishankar said that India, through its UPI, has “revolutionised digital transactions”.
Stressing that it has taken financial inclusion in India to new levels, he said, “Today 40 per cent of the world’s real-time digital payments take place in our country.”
“We see this revolution, every day in our lives. I am pleased to note that with the signing of the MoU today, we have taken the first step towards bringing this digital innovation to Maldives,” he said.
“I wish the very best to stakeholders on both sides and hope that we will soon see the first UPI transaction here. I should mention that it will have a very positive impact on tourism,” he added.
Tourism is the main source of economic activity for the Maldives, contributing nearly 30 per cent of the GDP and generating more than 60 per cent of foreign exchange.
Jaishankar’s visit also aimed to reset relations between India and the Maldives following political changes in the Maldives. The trip is the first high-level visit from India since Mohamed Muizzu, the Maldives’ new pro-China president, took office last year.
In his visit, Jaishankar and Maldivian Foreign Minister Moosa Zameer jointly inaugurated six High Impact Projects, including improvements in street lighting, mental health services, and special education. They also renewed a Memorandum of Understanding for training additional civil services officers.
India’s relations with the Maldives faced a setback last year when President Muizzu called for the withdrawal of Indian military personnel from the Maldives. The personnel were replaced by civilians by May 10, as agreed upon by both parties.