Amid strained ties, Maldives to launch India's RuPay services to 'bolster Maldivian Rufiyaa'

Despite recent tensions in their bilateral relations, the Maldives is set to launch India's RuPay service soon, which a senior minister has stated "will bolster the Maldivian Rufiyaa."

Team Asianet Newsable

First Published May 23, 2024, 9:27 PM IST | Last Updated May 23, 2024, 9:27 PM IST

Despite recent tensions in their bilateral relations, the Maldives is set to launch India's RuPay service soon, which a senior minister has stated "will bolster the Maldivian Rufiyaa." RuPay, developed by the National Payments Corporation of India (NPCI), is India's first global card payment network and is widely accepted at ATMs, POS devices, and e-commerce websites across the country.

While announcing that both India and China have agreed to use local currency in bilateral trade, Minister of Economic Development and Trade Mohamed Saeed mentioned the forthcoming launch of India's RuPay in the Maldives.

"The upcoming launch of India's RuPay service is anticipated to further bolster the Maldivian rufiyaa (MVR)," Saeed told state-run PSM News on Wednesday. He also emphasised that "addressing the dollar issue and reinforcing the MVR is a top priority for the current administration.

However, no specific launch date has been announced.

Last week, the news portal CorporateMaldives.com reported that Saeed stated the card will be "formally utilized for transactions denominated in rupees within Maldivian territory." The minister added, "We are currently engaged in discussions with India to explore avenues for facilitating payments in rupees."

A joint statement during the official visit of then-President of the Maldives Ibrahim Mohamed Solih to India in August 2022 said, "The two leaders welcomed the ongoing work to operationalize the usage of Rupay Cards in Maldives and agreed to consider further measures to boost bilateral travel and tourism and economic inter-linkages."

Over the last few years, multiple banks and payment companies from various countries have partnered with NPCI International Payments Ltd (NIPL), the international arm of NPCI, to accept UPI and RuPay in various forms.

Ever since the pro-China President Mohamed Muizzu assumed power last November, relations between the Maldives and India have soured. The recent repatriation of over 80 Indian military personnel, who were manning three aviation platforms in the Maldives, at his insistence, has further strained bilateral ties.

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