Maldives President Mohamed Muizzu announces introduction of India’s UPI to boost financial transactions
- In Reports
- 02:43 PM, Oct 21, 2024
- Myind Staff
Maldives President Mohamed Muizzu announced on Sunday the introduction of India’s Unified Payment Interface (UPI) in the country, marking a significant step towards enhancing financial transactions and boosting the local economy.
The move follows a Cabinet recommendation and is aimed at promoting financial inclusion, improving transaction efficiency, and upgrading the nation’s digital infrastructure. The President’s office released a statement confirming that the Cabinet had carefully reviewed a proposal submitted by the Minister of Economic Development and Trade before reaching the decision to adopt UPI.
To ensure smooth implementation, the Muizzu administration will form a consortium involving key players such as banks, telecom companies, state-owned enterprises, and fintech firms. The consortium will be led by TradeNet Maldives Corporation Limited, which will play a crucial role in overseeing the integration of UPI in the Maldives.
This initiative aligns with India’s broader efforts to promote its digital public infrastructure globally, including UPI, Aadhaar, the Modular Open Source Identity Platform (MOSIP), and DigiLocker. India’s Ministry of External Affairs (MEA) has been actively pushing for the adoption of such digital public infrastructure to foster digital transformation both within India and abroad. India aims to strengthen collaboration in ecosystem-centric digital initiatives, commonly referred to as India Stack.
The announcement comes shortly after President Muizzu’s official visit to India, where he met with Indian Prime Minister Narendra Modi to review the full spectrum of bilateral ties. During their discussions, both leaders agreed to share expertise on the implementation of digital and financial services, particularly through cooperation in the realm of Digital Public Infrastructure (DPI). This includes the launch of UPI, Unique Digital Identity, the Gati Shakti Scheme, and other digital services aimed at modernising and enhancing financial and public service systems.
Earlier this month, President Muizzu expressed gratitude towards the Government of India for its support, which included a USD 400 million aid package and an INR 30 billion bilateral currency swap agreement. This financial assistance has been crucial in helping the Maldives navigate ongoing financial challenges.
In addition to the UPI implementation, the two nations are also exploring further measures to assist the Maldives in overcoming its economic hurdles. During Muizzu’s India visit, both sides agreed that it was an ideal moment to reshape and deepen their cooperation by transforming their bilateral relationship into a Comprehensive Economic and Maritime Security Partnership.
The introduction of UPI in the Maldives is seen as a pivotal development in fostering economic growth, streamlining financial transactions, and strengthening ties between the two countries in the field of digital infrastructure.
Comments