The People's Majlis has passed amendments to the National Payment System Act, granting the Maldives Monetary Authority (MMA) the legal mandate to establish a "National Payment Switch"—a unified network connecting all financial transactions conducted by banks and payment service providers.
Under the approved amendments, once the payment switch is established, all payment transactions processed through financial institutions in the Maldives must be routed through this national infrastructure. The law further mandates that these institutions complete all necessary technical requirements to facilitate this integration.
According to the MMA, this change will help interconnect all local banks and financial service providers within a single network. The system will ensure full interoperability, allowing customers to make payments to any bank's QR code or Point-of-Sale (POS) terminal using their cards or digital wallets.
The implementation of this system is expected to pave the way for lower transaction processing fees and ensure that the nation's financial data remains within domestic borders. The infrastructure is modeled after successful international systems, such as India’s Unified Payments Interface (UPI) and Brazil’s PIX.
The National Payment Switch is set to complement "Favara," the central bank’s successful Instant Payment System, further strengthening digital financial services. The switch will be managed under "Payment Maldives," a subsidiary established by the central bank to operate national payment infrastructures.
The MMA has been working to establish such a switch for several years. However, previous efforts faced delays due to a lack of cooperation from commercial banks, a challenge this new legislative framework aims to resolve.
