Indian expatriates in the Maldives are grappling with severe financial strain after the State Bank of India (SBI) Maldives announced a sharp reduction in its monthly remittance ceiling from USD 400 to USD 150, effective October 25, 2025, citing an acute shortage of foreign currency.
The decision has triggered widespread concern among the over 6,000 Indian nationals working across the archipelago — including teachers, doctors, nurses, lab technicians, and skilled professionals — many of whom rely solely on SBI Maldives to transfer their earnings to families in India.
Sharp Decline in Remittance Allowance
Until a decade ago, Indian expatriates could remit their full earnings freely. However, SBI Maldives has progressively tightened its foreign currency limits — first capping transfers at USD 500 in 2014, then at USD 400, and now slashing it further to USD 150 per month.
In an official notice to customers, the bank said it was “unable to sustain the current salary remittance limits due to low inflows of foreign exchange.” It added that international ATM withdrawals and card transactions from MVR accounts will also be suspended from October 25. SBI assured customers that the restrictions are temporary and will be reviewed periodically as foreign exchange availability improves.
Heavy Losses Through Unofficial Transfers
With the new limits, many Indian workers are turning to private money transfer agents to send essential funds home — but at a steep cost. For example, sending 10,000 Maldivian Rufiyaa (MVR) officially converts to around ₹57,480, while unofficial channels currently yield only ₹45,000, resulting in a loss of nearly ₹12,000 due to unfavourable black-market exchange rates.
At official bank rates, 1 MVR equals approximately ₹5.75–₹5.8, whereas in informal exchanges, it is valued at barely ₹4.5. Expatriates also report that banks charge over USD 10 in service fees and commissions per transaction, further reducing their take-home remittances.
India–Maldives Coordination Underway
Responding to the growing outcry, the High Commission of India in Malé said it is actively engaging with the Maldives Monetary Authority (MMA), the Ministry of Foreign Affairs, and the State Bank of India to address the issue.
The mission confirmed discussions are underway on several measures to ease remittance flows, including:
- Establishing an INR–MVR exchange mechanism;
- Introducing Unified Payments Interface (UPI) in Maldives;
- Expanding RuPay card usage; and
- Opening INR-denominated accounts in Maldivian banks.
The High Commission urged Indian expatriates to plan their remittances in advance, encourage employers to pay salaries in USD, and follow only official updates as talks continue.
Maldives’ banking system has faced recurring USD liquidity challenges, driven by its high import dependence and seasonal tourism-based dollar inflows. The currency shortage has led local banks to ration foreign exchange and limit USD transactions to manage reserves.
The High Commission assured the Indian community that resolving the issue is a priority, emphasizing continued efforts “to protect the financial well-being of Indian nationals working in the Maldives”.
