Maldives to Introduce India's RuPay Service

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.