Amid tensions in bilateral ties, Maldives plans to launch India’s RuPay service, which according to a senior minister, might bolster the Maldivian Rufiyaa. However, the specific launch date has not yet been announced.
Maldives’ Minister of Economic Development and Trade Mohamed Saeed discussed the upcoming launch of India’s RuPay card while highlighting India and China’s agreement to use local currency for bilateral trade. He said this step could potentially cut Maldives’ yearly import expenses and help save around USD 750,000.
In July 2023, the Government of India announced that Maldives, along with 21 other nations, could establish Special Rupee Vostro Accounts (SRVAs) to boost trade using local currencies.
“The introduction of India’s RuPay service is anticipated to bolster the Maldivian Rufiyaa,” said Saeed in a statement on Wednesday (May 22, 2024).
Minister Saeed highlighted the meeting between former Maldivian President Ibrahim Mohamed Solih and Indian High Commissioner Munu Mahawar in August 2022. During the meeting, a joint statement welcomed the progress in establishing RuPay Cards in the Maldives.
Both nations agreed to explore further steps to boost bilateral travel, tourism, and economic relations.
RuPay, launched by the National Payments Corporation of India (NPCI), stands as India’s premier card payment network, widely accepted at ATMs, POS terminals, and online merchants across India.
Also Read: UPI goes international. Here is the list of countries that accept UPI.
In recent years, NPCI International Payments Ltd (NIPL), the international arm of NPCI has partnered with several international banks and payment companies to enable UPI and RuPay services worldwide.
Geopolitical Shifts Under Pro-China Leadership
The tensions between India and the Maldives are rooted in President Mohamed Muizzu’s pro-China stance since taking office last November.
In line with his election promise, Muizzu expelled 88 Indian military personnel from three aviation platforms that were gifted by India. He accused India of interference and had campaigned with the slogan “Indian Out” in the September elections.
However, despite these challenges, the Maldives remain crucial to India’s maritime interests in the Indian Ocean. The tourism minister has highlighted the importance of strong bilateral ties, focusing on the economic significance of Indian tourists.
These developments highlight the complex dynamics between the two nations amidst changing geopolitical landscapes in the region.
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