India and Maldives Strengthen Ties with UPI Expansion: A Boost for Tourism and Digital Payments
Image: National Payment Corporation of India (NPCI)
Image Courtesy: Opportunity India
In a significant move to bolster bilateral relations, India and the Maldives have taken steps that will not only enhance tourism but also modernize the financial and governance sectors of the Maldives.
This blog explores the outcomes of External Affairs Minister S. Jaishankar's recent visit to the Maldives, focusing on the adoption of India's Unified Payments Interface (UPI) and expanded training programs for Maldivian civil servants.
Introduction
During a pivotal meeting between India's External Affairs Minister, S. Jaishankar, and his Maldivian counterpart, Moosa Zameer, both nations signed a key Memorandum of Understanding (MoU) that is set to revolutionize the financial landscape of the Maldives.
The agreement, aimed at implementing India's Unified Payments Interface (UPI) across the Maldives, is expected to provide a significant boost to tourism and ease financial transactions for both locals and visitors.
Digital Payments: A New Era in the Maldives
On the first day of his three-day visit, Jaishankar and Zameer finalized the MoU, which will see the National Payments Corporation of India (NPCI) working closely with the Maldives' Ministry of Economic Development and Trade.
The UPI system, which has already transformed digital payments in India, will now be extended to the Maldivian archipelago, making it easier for tourists and residents alike to conduct transactions.
This initiative is expected to significantly enhance the convenience of traveling to and within the Maldives, thereby boosting the country's tourism industry.
Reviving Bilateral Relations
Image: S. Jaishankar & Â Moosa Zameer
Image Courtesy: Hindustan Times
This visit, which marks Jaishankar's first since President Mohamed Muizzu's administration took office in November 2023, is seen as a strategic move to revitalize the relationship between India and the Maldives.
President Muizzu has been taking steps to reduce his nation's dependency on India, shifting closer to China. However, this MoU is a clear signal that both nations are keen on maintaining and strengthening their ties.
Expanding Governance Capabilities
In addition to the UPI agreement, a second MoU was signed to further strengthen the governance framework in the Maldives.
This agreement extends an additional 1,000 training slots for Maldivian civil servants at India's National Centre for Good Governance.
This initiative aims to enhance the administrative skills of Maldivian civil servants, ensuring better governance and public service delivery in the Maldives.
UPI's Global Expansion: The UAE Joins the Network
India's digital payment revolution is not just limited to its neighboring countries. Last month, NPCI International Payments Limited partnered with Network International, a leading digital commerce company in the Middle East and Africa, to bring UPI services to the United Arab Emirates (UAE).
This marks the seventh country to adopt UPI, joining the ranks of Nepal, Mauritius, Bhutan, France, Singapore, and Sri Lanka.
UPI's Future: Global Ambitions
The Reserve Bank of India (RBI) and NPCI have ambitious plans for the future. Over the next five years, they aim to roll out UPI services in 20 additional countries, expanding the reach of this revolutionary payment system.
The agreements signed between India and the Maldives signify a strengthening of their bilateral relationship, with the potential to bring about significant economic and governance benefits to the Maldives.
As UPI continues to expand globally, it is clear that India is positioning itself as a leader in digital payments and governance training, with the Maldives set to be one of its key partners in this journey.
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