Recently, In a significant move Maldives took steps to enhance the digital payment system. Making sure an enhanced financial transactions which would stimulate economic growth. President Mohamed Muizzu announced on Sunday the introduction of India’s Unified Payment Interface (UPI) in the country. The initiative aims to streamline payment processes and improve accessibility for citizens, fostering a more rapid growing financial ecosystem.

This consortium will include banks, telecom companies, state-owned enterprises, and fintech firms operating in the country. The government appointed TradeNet Maldives Corporation Limited as the leading agency for this initiative. This signals a commitment to streamline and modernize the nation’s financial and digital infrastructure.

India and Maldives Forge Closer Partnership Through Digital Collaboration

Muizzu visited India recently to meet PM Narendra Modi. This visit was significant for both countries. In his visit to India they discussed the full spectrum of bilateral relations.

During that official visit, both leaders agreed to collaborate on the implementation of digital and financial services. This included sharing of expertise in Digital Public Infrastructure (DPI). Initiatives like UPI, Unique Digital Identity, and the Gati Shakti Scheme were highlighted. They are the key areas for cooperation, aimed at modernizing and enhancing the Maldives’ financial ecosystem.

Financial Cooperation Amid Economic Challenges

Earlier, Maldives President Mohamed Muizzu expressed gratitude for the Indian government’s decision to provide support through a bilateral currency swap agreement of USD 400 million and INR 30 billion. This assistance is seen as crucial in addressing the ongoing financial challenges facing the Maldives.

During his visit to India, Muizzu and Prime Minister Narendra Modi agreed on additional measures to further support the Maldives in overcoming its economic difficulties. The leaders recognized the current moment as an opportunity to establish a new framework for cooperation, aiming to transform the bilateral relationship into a Comprehensive Economic and Maritime Security Partnership.

How India Promotes Global Digital Public Infrastructure Initiative

As part of its global outreach, India is actively promoting its digital public infrastructure. This includs offerings like the Unified Payments Interface (UPI), Aadhaar, the Modular Open Source Identity Platform (MOSIP), and DigiLocker.

The Ministry of External Affairs (MEA) stated that this initiative aims to drive digital transformation not only within India but also in other countries. The effort seeks to enhance cooperation on ecosystem-centric digital initiatives. Collectively known as India Stack, fostering a collaborative approach to digital innovation worldwide.