Despite recent turbulence in bilateral ties, the Maldives is set to launch India’s RuPay service, a move a senior minister says will bolster the Maldivian rufiyaa.
Minister of Economic Development and Trade Mohamed Saeed announced the forthcoming launch while highlighting that both India and China have agreed to use local currencies in bilateral trade. He expressed optimism that RuPay's introduction would strengthen the Maldivian rufiyaa (MVR).
“The upcoming launch of India's RuPay service is anticipated to further bolster the Maldivian rufiyaa,” Saeed told state-run PSM News on Wednesday. He 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, CorporateMaldives.com reported that Saeed indicated the RuPay card would be formally used for transactions denominated in rupees within the Maldives. “We are currently engaged in discussions with India to explore avenues for facilitating payments in rupees,” the minister said.
A joint statement from India and the Maldives during former Maldivian President Ibrahim Mohamed Solih’s official visit to India in August 2022 noted that both leaders welcomed ongoing efforts to operationalize RuPay in the Maldives.
They also agreed to consider further measures to enhance bilateral travel, tourism, and economic linkages. In recent years, multiple banks and payment companies worldwide have partnered with NPCI International Payments Ltd. (NIPL), the international arm of NPCI, to accept UPI and RuPay in various forms.
However, since pro-China President Mohamed Muizzu took office last November, Maldives-India relations have soured. The recent repatriation of over 80 Indian military personnel, who had been manning three aviation platforms in the archipelago, at President Muizzu’s insistence, has further strained ties.
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