Maldives to Introduce India's RuPay Service

  • 24 May 2024

Amidst bilateral challenges, Maldives prepares to roll out India's RuPay service, aiming to fortify the Maldivian rufiyaa, as announced by Minister Mohamed Saeed.

Key Points

  • Bilateral Trade Arrangement: Both India and China have agreed to use local currency in bilateral trade, with Maldives looking to reinforce its currency amidst the dollar issue.
  • Launch Date Pending: While the launch date is yet to be announced, discussions are ongoing between Maldives and India to explore avenues for facilitating payments in rupees.
  • Boosting Local Economy: The utilization of RuPay cards for transactions denominated in rupees within Maldivian territory is expected to benefit the local economy.
  • Bilateral Commitments: An India-Maldives joint statement in 2022 highlighted efforts to operationalize RuPay card usage, aiming to enhance bilateral travel, tourism, and economic inter-linkages.
  • Challenges in Relations: Tensions have risen between Maldives and India since President Mohamed Muizzu, perceived as pro-China, assumed power last November.