Maldives to Introduce Unified Payment Interface (UPI)
President Mohamed Muizzu’s Initiative
The President of Maldives, Mohamed Muizzu, has announced plans to introduce the Unified Payment Interface (UPI) in the country. This decision follows a recommendation from the Cabinet and is part of a collaboration with India to enhance digital and financial services.
Benefits for the Maldivian Economy
The introduction of UPI is expected to boost the Maldivian economy by increasing financial inclusion, improving transaction efficiency, and enhancing digital infrastructure. The decision was made after a detailed discussion in a Cabinet meeting, based on a report from the Minister of Economic Development and Trade.
Formation of a Consortium
President Muizzu has proposed forming a consortium to implement UPI, involving banks, telecom companies, state-owned enterprises, and fintech firms. TradeNet Maldives Corporation Limited will lead this consortium.
Interagency Coordination Team
An interagency coordination team will be established, including the Ministry of Finance, the Ministry of Homeland Security and Technology, and the Maldives Monetary Authority, to oversee the UPI implementation.
India’s Role in Digital Cooperation
During President Muizzu’s recent visit to India, India agreed to share its expertise in digital services. Additionally, RuPay cards were launched in the Maldives to facilitate payments for Indian tourists and Maldivians visiting India.
Doubts Revealed
Maldives -: The Maldives is a small island country located in the Indian Ocean, known for its beautiful beaches and clear blue waters. It is a popular tourist destination.
Mohamed Muizzu -: Mohamed Muizzu is the President of the Maldives. He is responsible for leading the country and making important decisions for its development.
UPI -: UPI stands for Unified Payment Interface. It is a system developed in India that allows people to transfer money easily between bank accounts using their mobile phones.
Financial inclusion -: Financial inclusion means making sure that everyone, including people who are poor or live in remote areas, has access to financial services like banking and digital payments.
Transaction efficiency -: Transaction efficiency refers to how quickly and easily people can complete financial transactions, like sending or receiving money, without any problems.
Digital infrastructure -: Digital infrastructure includes the technology and systems needed to support digital services, like the internet, mobile networks, and payment systems.
TradeNet Maldives Corporation Limited -: TradeNet Maldives Corporation Limited is a company in the Maldives that will help set up the UPI system by working with banks, telecom, and fintech companies.
Fintech companies -: Fintech companies are businesses that use technology to offer financial services, like mobile payments or online banking, making it easier for people to manage their money.
Interagency team -: An interagency team is a group of people from different organizations or government departments who work together to achieve a common goal, like implementing the UPI system.
RuPay cards -: RuPay cards are Indian payment cards similar to Visa or MasterCard. They allow people to make payments and withdraw money from ATMs.
