Thursday, June 20, 2024
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Maldives to launch RuPay service

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

Minister of Economic Development and Trade Mohamed Saeed, while discussing how both India and China have agreed to utilize local currency in bilateral trade, mentioned the forthcoming launch of India’s RuPay.

“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, there has been no announcement of any date for the launch.

Last week, a news portal, CorporateMaldives.com, reported that Saeed conveyed that the card will be “formally utilised for transactions denominated in rupees within Maldivian territory.” “We are currently engaged in discussions with India to explore avenues for facilitating payments in rupees,” the minister said.

During the official visit of then President of Maldives, Ibrahim Mohamed Solih, to India in August 2022, a joint statement between India and Maldives expressed satisfaction with the progress made in implementing the use of Rupay Cards in Maldives. Additionally, both leaders agreed to explore additional measures aimed at enhancing bilateral travel, tourism, and economic ties. In recent years, several banks and payment firms worldwide have collaborated with NPCI International Payments Ltd (NIPL), NPCI’s international subsidiary, to facilitate the acceptance of UPI and RuPay in various forms.

Since President Mohamed Muizzu, who is perceived as pro-China, took office last November, the relationship between the Maldives and India has deteriorated. The recent repatriation of over 80 Indian military personnel stationed at three aviation platforms in the Maldives, following his insistence, has further strained bilateral relations, leaving a sour note.

 

 

 

 

 

 

 

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