Breaking new grounds, shifting India’s digital payment journey to top gear, Prime Minister Narendra Modi on Monday announced to work closely with Maldives to link ‘India and the Maldives through UPI‘. “In the coming time, efforts will be made to link India and the Maldives through UPI as well,” PM Modi said on Monday. PM Modi in a joint press statement also acknowledged the recent launch of RuPay cards in Maldives.
The announcement comes at a time when UPI transactions in India swelled to an all time high to 15.04 billion valued at Rs 20.64 lakh crore in September 2024, a 0.5% month-on-month and a 42% year-on-year growth. The UPI transactions in August 2024 stood at 14.96 billion, amounting to Rs 20.60 lakh crore.
“To strengthen economic relations, we have decided to initiate discussions on a Free Trade Agreement. Work will also be done on trade settlements in local currency. We have also focused on digital connectivity. A short while ago, the RuPay card was launched in the Maldives,” Prime Minister Modi said on Monday.
While India’s economic growth forecast remains bright, the digital payment system UPI has grabbed global attention with more and more countries looking to join the Indian digital payment interface. At present as many as 10 countries including United Arab Emirates (UAE), Singapore, Bhutan, Nepal, Malaysia, Oman, Saudi Arabia, France, UK (United Kingdom) and Sri Lanka have either adopted or are in the process of integrate UPI to facilitate cross-border transactions and local payments for Indian tourists and expatriates.
Further the UPI system is also linked with payment systems in different countries, which allows cross-border payments, remittances, and merchant payments abroad. Meanwhile, the announcement around the launch of RuPay cards in Maldives also marks the first official visit of Maldivian President Dr Mohamed Muizzu to New Delhi after assuming office late last year.
Addressing the press meet with President @MMuizzu of Maldives.https://t.co/1wB3CZgfnI
— Narendra Modi (@narendramodi) October 7, 2024
Backed by technology innovation, RuPay system has not just helped in financial inclusion but has also made digital payments secure, efficient, and affordable. The Indian version competes with international card networks including Visa and Mastercard. While the RuPay Contactless allows users to make payments without swiping or inserting cards, a feature in line with India’s push toward a digital economy.
The RuPay cards are also integrated with UPI (Unified Payments Interface), which helps users to make card-based payments through UPI apps. With the latest announcement by PM Modi on Monday, Rupay cards will now be accepted across 26 countries globally. These include the United Arab Emirates (UAE), Singapore, Bhutan, Maldives, Nepal, Saudi Arabia, Bahrain, Myanmar, France, Germany, South Korea, United Kingdom, Russia, Australia, Oman, Qatar and Japan.
Speaking on the occasion PM Modi maintained that the economic growth and development was the key partnership pillar for the two nations, “Development partnership is a key pillar of our relations, and we have always prioritized the needs of the Maldivian people,” PM Modi said.
PM Modi said that this year, the State Bank of India (SBI) has rolled over $100 million worth of ‘treasury bills’ for the Maldives. “Additionally, a $400 million and ₹3,000 crore currency swap agreement has been finalized according to the Maldives’ needs,” PM Modi said.
While talking about key infrastructure projects between the two countries, PM Modi said, “Today, we inaugurated the redeveloped Hanimaadhoo Airport, and the Greater Malé Connectivity Project will now be accelerated. A new commercial port in Thilafushi will also be developed, and over 700 social housing units were handed over, among other initiatives, ensuring clean water for 30,000 people and supporting agriculture and fish processing,” PM Modi said announcing that the two nations will also ‘collaborate in oceanography and the blue economy.’
