Maldives Set To Launch India's RuPay, Eyes Strengthening Local Currency

Maldives is planning to launch India's RuPay service and bolster its local currency's strength Rufiyaa
RuPay transactions
RuPay transactions

Maldives is reportedly planning to introduce India's RuPay service. The recent update comes after heightened tensions between the country's bilateral relations. A senior official of the nation also stated that this move will strengthen the position of Maldivian Rufiyaa.

Minister of Economic Development and Trade Mohamed Saeed disclosed that India and China have agreed to use domestic currencies in bilateral trade, alongside mentioning about the forthcoming introduction 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 talked about “addressing the dollar issue and reinforcing the MVR is a top priority for the current administration.

However, there has been no official declaration around the launch date. Recently, reported that Minister Saeed said that the card would 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.

An India-Maldives joint statement during the official visit of the then President of Maldives Ibrahim Mohamed Solih to India in August 2022 said, “the two leaders welcomed the ongoing work to operationalize the usage of RuPay Cards in Maldives and agreed to consider further measures to boost bilateral travel and tourism and economic inter-linkages.”

Over the last few years, multiple banks and payment companies from across various countries have partnered with NPCI International Payments Ltd (NIPL), the international arm of NPCI, to accept UPI and RuPay in one form or the other.

Ever since the pro-China President Mohamed Muizzu assumed power last November, the relations between the Maldives and India have soured. The repatriation of 80 plus Indian military personnel manning three aviation platforms earlier this month from the archipelago nation at his insistence has left a bitter note on bilateral ties.

(With Inputs From PTI)

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