India’s Foreign Minister, Mr. S. Jaishankar, is on his three-day visit to the Maldives, and during this visit a Memorandum Of Understanding was signed between the two countries and several important announcements followed.
UPI Based Payments In Maldives
An agreement was signed between the two countries to begin the use of UPI based services in the island nation. Particularly the agreement was between the NPCI of India and the Ministry of Economic Development and Trade of Maldives.
UPI And The Digital Ecosystem
UPI is a payments system developed by the National Payments Corporation of India (NPCI) and facilitates quick inter-bank transfers using mobile phones. Nearly, 40% of India’s online payments are done using UPI. This would be an innovation for Maldives and is expected to have a significantly positive impact on the tourism sector. This is very crucial for the island, as nearly one-third of its entire GDP relies on tourism. Maldives is a popular tourist spot for many.
Other Developments
But this was not all, six other projects were signed between Mr. Jaishankar and his counterpart Mr. Moosa Zameer. These included matters like mental health, street lighting and special education.
Geopolitical Significance Behind This Visit
Along with these projects, the visit also holds greater significance in terms of geopolitical relations in a volatile world. This is the first visit of an Indian leader to Maldives, since Mohammad Muizzu took over as the new President of the country. This visit and MOU would further strengthen the bond that the two neighbors share and increase their trust and respect for each other.
This also ensures a mutually beneficial partnership between the two countries and that they would continue to collaborate further on matters of common interest like tourism, joint exercises and training, to name a few.
