Maldives UPI: The island nation is all set to roll out India's UPI system, bringing-in multiple benefits to the Maldives' financial sphere such as efficient financial transactions
Maldives introduces UPI: President Mohamed Muizzu is all set to launch India's UPI system (Unified Payments Interface) in the island nation. This comes after India agreed to share its expertise in digital and financial services, including UPI and Unique Digital Identity.
According to a statement from the Maldivian President's office, the decision is expected to greatly benefit the nation's economy by boosting financial inclusion, enhancing the efficiency of transactions and strengthening digital infrastructure of the island nation.
The statement also mentioned that the decision followed a detailed discussion in the Cabinet, based on a report submitted by the Minister of Economic Development and Trade.
The island nation steadily seems to have inclined towards India after a period of strained relations. It is worth noting that the Maldivian economy has been under increased pressure since the past year, thanks to its over reliance on tourism.
The Maldivian economy is also facing challenges owing to a sharp decline in Indian tourists, who previously accounted for a large share of visitors.
With tourism being a major revenue generator for the economy, any disruptions in travel space could add pressure to its already fragile state.
India was once the major source of tourism for the island country. But relations have deteriorated since President Mohamed Muizzu took office late last year on an 'India Out' campaign. This political rift has resulted in strained relations between the two nations.
In the first half of 2024, Indian tourist arrivals plummeted to sixth place, with just 63,450 visitors marking a decline of 42.5 per cent compared to the previous year.
For Indian travellers, the warming relations between both the nations could be beneficial for those planning a trip as it can make payments and transactions much easier for tourists. Plus, with India's digital payment infrastructure expanding, it will be even simpler for Indian tourists to handle their financial activities while enjoying their stay.