In a significant move to boost local tourism and enhance economic ties, India has introduced its Unified Payments Interface (UPI) in the Maldives. The announcement was made by Indian External Affairs Minister S. Jaishankar during his visit to the Maldives, which began on August 9, 2024.

The Memorandum of Understanding (MoU) for this initiative was signed as part of Jaishankar’s official visit, marking the first time he has visited the Maldives since President Mohamed Muizzu took office in November 2023. This move is seen as a strategic effort to strengthen India-Maldives relations, especially in light of recent shifts in Maldivian foreign policy towards China.

UPI, a revolutionary digital payment system developed by India, is set to transform how transactions are conducted in the Maldives. According to Jaishankar, UPI has revolutionized digital payments in India, with 40% of the world’s real-time digital transactions taking place in the country. By introducing UPI to the Maldives, India aims to make it easier for tourists to manage transactions, thereby boosting travel and supporting the local economy.

In addition to the UPI launch, Jaishankar also inaugurated water and sanitation projects across 28 Maldivian islands, reflecting India’s commitment to improving infrastructure and community development in the region. The visit highlights India’s ongoing efforts to reinforce its strategic partnerships and support regional growth through collaborative projects.

This development is expected to have a positive impact on Maldivian tourism and financial inclusivity, paving the way for enhanced economic cooperation between the two nations.