External Affairs Minister S Jaishankar said India and Maldives have signed an agreement to introduce Unified Payments Interface (UPI) in the Indian Ocean archipelago. He added that the move will have a positive impact on the tourism sector. A Memorandum of Understanding (MoU) was signed between the National Payments Corporation of India and the Ministry of Economic Development and Commerce of the Maldives after Jaishankar concluded his meeting with his Maldivian counterpart Musa Zameer.

Jaishankar began his three-day visit to the Maldives on Friday, the first since President Muhammed Muizu's government took office in November last year.

"Had a fruitful discussion with Foreign Minister Musa Zameerin Male today. A Memorandum of Understanding (MoU) was signed between the National Payments Corporation of India (NPCI) and the Ministry of Economic Development and Trade of the Maldives on the establishment of a digital payment system in the Maldives. "Jaishankar said in a tweet.

In addition, the Minister along with his Maldivian counterpart also announced the inauguration of six high impact projects in the areas of street lighting, mental health, children's speech therapy and special education.

The two sides also renewed another MoU between India's National Centre for Good Governance and the Civil Service Commission of the Maldives for 1,000 additional slots to train civil servants in the Maldives.

In May, it was reported that the Maldives was planning to launch India's RuPay service to "strengthen the Maldives Rufiyaa."

In January, relations between the two countries were strained after a Maldivian deputy minister, along with other cabinet members and government officials, made "derogatory and obnoxious" remarks about Prime Minister Narendra Modi's then-visit to Lakshadweep and his call for development of the Indian archipelago.

Following this, many start-ups took a pro-India stance and boycotted the Maldives in some way or the other. For example, Insurance Dekho suspended travel insurance to the Maldives, saying, "We stand in solidarity and solidarity with our country. Another travel tech company, EaseMyTrip, also announced the suspension of all flight bookings to the Maldives.

In a similar vein, travel tech start-up MakeMyTrip has launched the 'Beach of India' campaign that offers offers and discounts to encourage Indian travellers to explore the "amazing beaches of the country."