Favara

Favara is the national Instant Payment System designed to facilitate fast, convenient, and secure transactions across the Maldives. Originally launched by the MMA on 26th August 2023, Favara established full interoperability among service providers. This allows customers to send and receive funds instantly, 24/7/365, regardless of which bank or payment provider they use.

 

The system’s name – Favara – reflects three key features of the system in Dhivehi. That is, Faseyha (Easy), Vaguthun (Instant) and Rahkaatheri (Secure).

 

Our Impact on the Financial Ecosystem

Favara provides an inclusive and integrated platform that optimizes how payments are made across all sectors of the economy. A central objective of this infrastructure is to provide a level playing field for all market players, from established commercial banks to emerging Payment Service Providers (PSPs). By leveraging Favara’s technologically advanced architecture, participants can develop innovative solutions and address a wide range of modern use-cases for their customers.

 

Security and Global Standards

To ensure world-class security and reliability, Favara is built on ISO 20022 messaging standards. The platform is designed in alignment with international best practices, keeping pace with the latest technological advancements in the global payments sector.

Favara is based on ISO20022 messaging standards and has been designed in line with the internationally recognized standards to ensure its security, keeping up with the latest developments in technology in the payments sector.

 

Participants

Favara’s network continues to grow. It currently includes all seven banks operating in the Maldives and one non-bank payment service provider.

 

Services of Favara

Favara aims to promote the use of digital payment solutions in the Maldives, offering a more convenient and efficient alternative to the use of cash, cheques and other traditional methods. The four key new services introduced via Favara are:

 

Favara Transfer

Favara Transfer is the service that enables customers to conduct inter-bank transactions instantly. The system also provides account verification services, allowing customers to verify the recipient of each transaction before initiating – regardless of which service provider the account is held at.

Through this service, the customers can initiate transactions with the added confidence that the receiver is the intended beneficiary of the funds.

The transaction limit for a single Favara Transfer is currently at MVR 200,000.

 

Favara Request

Favara Request is a new service introduced via the system that allows a customer to send a payment request for a specific amount directly to a payer. The payer can then either accept or reject the request. The acceptance of the request will result in the initiation of a payment transaction – subject to the typical authentication measures implemented by the respective service providers. The service will also be available for individuals as well as corporate customers.

Transaction limit for a single Favara request is currently at MVR 10,000.

 

Favara ID

Favara ID is a service that allows banks and payment service providers to register aliases linked to the customers’ account numbers. The Favara ID of the customer can then be used to initiate payments, instead of adding account numbers. To link your Favara ID to the desired account number, you will need to activate the service via internet banking services or the mobile application of your respective service provider.

 

Currently, the following aliases can be linked as a Favara ID:

• Phone number
• Email address
• National ID number

More than one of these aliases can be linked to any one account. However, each Favara ID can only be linked to a single account at any given time.

 

 

Favara Recall

Favara Recall is a service that allows the customers to request a refund of an already initiated account transfer. This aims to provide a more streamlined and convenient approach to request a refund for a transaction that was initiated by mistake, or where the customer has reason to believe there has been fraudulent activity.

Favara Recalls can be initiated or requested via internet banking services or the mobile application of the respective service provider, who will then investigate the case and ensure that adequate action is taken regarding the transaction(s) in a timely manner. The recipient of the Favara Recall will also need to accept the request for the refund to be processed.