The Maldives Monetary Authority (MMA) has entered into a Participation Agreement to initiate the deployment of the highly anticipated Instant Payment System (IPS).
MMA signed the agreement with major financial institutions, including the Bank of Maldives (BML), Maldives Islamic Bank (MIB), and State Bank of India. Governor of MMA, Ali Hashim, announced during the signing ceremony that IPS is currently undergoing pilot testing and is scheduled for an official launch next month. Hashim further revealed that additional banks will join the system in the near future, expanding its reach and capabilities.
IPS represents a cutting-edge financial infrastructure that facilitates immediate fund transfers between participating banks and financial institutions. By leveraging real-time electronic transactions, IPS ensures that payments are promptly credited to recipients’ accounts within seconds. Instant payment systems provide a convenient and efficient alternative to traditional payment methods such as checks or bank transfers, which can take hours or even days to process.
MMA outlined its post-trial plans, which involve final preparations for banks to introduce IPS to their customers. The introduction of IPS aims to enable rapid and secure financial transactions while fostering the growth of the payment system in the Maldives. Furthermore, it sets the stage for the introduction of additional modern and digital payment services.
One of the core objectives of IPS is to offer equal access to payment services for individuals unfamiliar with the financial system or lacking a bank account. MMA highlighted that the initial phase will focus on domestic financial transactions, with subsequent phases aiming to connect to national payment systems of other countries, thereby facilitating instant currency transactions on an international scale.
