The Reserve Bank of India (RBI) and the Maldives Monetary Authority (MMA) signed a significant Memorandum of Understanding (MoU) on Thursday in Mumbai, aiming to establish a framework for the use of their respective local currencies, the Indian Rupee (INR) and the Maldivian Rufiyaa (MVR), in cross-border transactions.

The MoU, formalised in the presence of RBI Governor Shaktikanta Das and MMA Governor Ali Hashim, marks a milestone in strengthening economic cooperation between the two nations. According to an official statement issued by the RBI, the agreement seeks to promote the use of INR and MVR for a variety of economic and financial transactions between India and the Maldives.