Maldives plans to launch India's RuPay service to bolster the Maldivian Rufiyaa

Despite the recent tension between the two countries, Maldives has announced the launch of India’s RuPay service. A senior minister on Wednesday said, “It will bolster the Maldivian Rufiyaa.” However, the date of the launch has not been announced yet.

Impact of RuPay’s Launch in Maldives

RuPay has been developed by the National Payments Corporation of India (NPCI) and it is the first global card payment network in India, providing a wide acceptance at ATMs, POS devices, and e-commerce websites all over the country.

During the announcement, Mohamed Saeed Minister of Economic Development and Trade mentioned how India and China have accepted the use of local currency for bilateral trade. “The upcoming launch of India’s RuPay service is anticipated to further bolster the Maldivian rufiyaa (MVR),” Saeed told PSM News. He also highlighted that “addressing the dollar issue and reinforcing the MVR is a top priority for the current administration.”

Saeed was reported saying that the card will be “formally utilised for transactions denominated in rupees within Maldivian territory.” He further said, “We are currently engaged in discussions with India to explore avenues for facilitating payments in rupees.”

Over the last few years, NPCI International Payments Ltd (NIPL), the international arm of NPCI, has been linked with many international banks and payment companies to accept UPI and RuPay in one form or the other.

Since the pro-China President Mohamed Muizzu has taken over the command, the India-Maldives relations have been negatively affected. It is to be noted that Mizzu won the Presidential election in September last year with an “India out” campaign. Previously, he has accused India of interfering in Maldives’ internal matters. Earlier this month, he forced out 80 plus Indian military personnel manning three aviation platforms gifted by India from the archipelago which has worsened the bilateral ties.

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