A Revolutionary change to Money Transactions

Maldives Instant Payment System (MIPS), set to be launched by the Maldives Monetary Authority (MMA).

MIPS will bring a revolutionary change to money transactions in the country. The safe, fast, convenient, easy service will end the hassle customers currently face on transaction made weekends, holidays as the transaction will be completed instantly via MIPS.

Money Transactions will be credited on time 

Currently, money will be deposited to the receiver’s account if the transaction is made via the same bank. However, any transaction through the Maldives Instant Payment System will be processed immediately and the money will be credited to the account. Money transactions in this system will not be restricted for a weekend for a holiday. Anywhere at any time, the customer of any bank can easily transact money through the system from time to time.

Cash transactions will become convenient 

With the change it will be easier to request for the payments, and customers can easily access internet banking and payments can be made easily on time. Moreover, there are many islands that do not have full banking services, and the services provided by the system allow them to complete transactions on islands where they can overcome the travel from one island to another for financial transactions.

Safe, Secure money transactions

As in developed countries, money transactions through this system can be done through a system where the safety measures used in such systems are ensured. Besides, both the sender and the receiver will get an immediate notification along with the transaction. This makes it easier to monitor transactions, as it increases the certainty of trade-offs. Transaction of money through such a secure system using digital means will reduce the need for resources such as cash and cheques and eliminate the barriers that are taking place.

New opportunities in the near future

Once the system is established and services are opened up, it will be used to facilitate, expand, and reach customers using this system to provide services. This will enable the introduction of services that allow seamless transactions to be made through tools such as modern payments apps in business transactions and payments for various services. It will also enable those who do not have a bank account to transact in money. Thus, even if customers don’t have an account in a bank, the system can easily use the digital wallet system of a participant in the system to send money to bank accounts as well as receive the money sent through these banks and pay for businesses and various services.

With the aim of revolutionising the payment system, MMA has started the first phase of the project and when the service begins, customers of banks involved in the system will be able to send money from one bank to another within seconds.

At present, only three banks are participating in the system and conducting tests. These include Bank of Maldives (BML), Maldives Islamic Bank (MIB) and State Bank of India (SBI). While some of the country’s largest financial sector banks have joined the system, other banks are gearing up to participate in the system and offering services in a time-bound manner. As such, the process of conducting the latest tests is underway.

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Ibrahim Yaafiu

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