Maldives has become eighth destination to accept Indian digital payment system UPI or Unified Payments Interface (UPI).

According to Indian External Affairs Minister Subrahmanyam Jaishankar, who was recently in the Maldives to discuss bilateral ties, India and the Maldives have signed an agreement to introduce the UPI in the archipelago nation, which will have a ‘very positive’ impact on its tourism sector.

The Memorandum of Understanding was signed on Friday between Jaishankar and Moosa Zameer, Minister of Foreign Affairs of the Maldives, in Male.

“I am pleased to note that the signing of the MoU today, we have taken the first step towards bringing this digital innovation to the Maldives. I wish the very best to stakeholders on both sides and hope that we will soon see the first UPI transaction here. I should mention that it will have a very positive impact on tourism,” says Jaishankar.

“The MoU will amplify the international finance opportunities, attracting foreign investment and support for economic development of the Maldives. The renewal of the MoU between the Civil Service Commission of Maldives and the National Centre for Good Governance of India, will enhance capacity building for our civil service officers. I am confident that tonight’s renewal will further boost productivity and efficiency in our civil service!” says Zameer on social media handle X.

Developed by the National Payments Corporation of India (NPCI), UPI is a real-time payment system designed to facilitate inter-bank transactions through mobile phones. Jaishankar highlighted that UPI has transformed digital transactions in India, noting that 40 pc of the world’s real-time digital payments occur there.

“The MoU signed between the Ministry of Economic Development and the National Payments Corporation of India (NPCI) aims for a more inclusive and efficient financial ecosystem that benefits all Maldivians, a significant step in economic collaboration between Maldives and India,” says Ministry of Foreign Affairs, Maldives, on X.

“We see this revolution, every day in our lives. I am pleased to note that the signing of the MoU today, we have taken the first step towards bringing this digital innovation to Maldives,” says Jaishankar.

Tourism is the main source of economic activity for the Maldives, contributing nearly 30 pc of the GDP and generating more than 60 pc of foreign exchange.

Jaishankar’s visit also aimed to reset relations between India and the Maldives following political changes in the Maldives. The trip is the first high-level visit from India since Mohamed Muizzu took over as President last year.