Although strained relations between India and the Maldives have improved considerably in recent times, the decision by the State Bank of India (SBI) to cap the monthly remittance limit has affected thousands of the Indian diaspora working in the island nation.
Expats could now only send $150 a month back home to India after the remittance limit was cut. State Bank of India (SBI) is the only Indian bank operating in the country. In short, a teacher or health worker who earns an average of ₹ 1 to ₹ 2 lakh in Maldivian Rufiyaa (Maldives currency) can only remit around ₹ 13,000 per month to India.
In an interview with The Hindu, Sumeena Sajeev, a teacher at GDh. Atoll School in the Maldives said the SBI Malé branch has drastically reduced money transfer – from an initially unlimited amount to $1,000, $800, $700, $500, $400 and subsequently to $150 per month. In addition, card withdrawals and other transactions outside the Maldives have been suspended, leaving many expatriates unable to securely access their earnings or support their families in India.
Through unregulated channels
Anoop Antony, another Keralite who works as a teacher in the Maldives, said the precarious financial situation has forced many to send money back home through unregulated black market channels. However, unscrupulous agents who know the plight of Indian expats in Maldives are ready to remit only at an exchange rate of ₹4.50 to 1 Maldivian Rufiyaa (MVR), while the open market exchange rate is ₹5.70, using the hard-earned income of around 6,000 Indian diaspora.
Those who get their salary in MVR face this problem as there is no direct currency swap from MVR to Indian currency. There are some industries, such as tourism, that pay their employees in dollars, and these employees do not have such problems. “We have taken up the matter with the SBI offices in Male. However, they are unable to resolve the issue as there is a huge dollar shortage in the island nation and the restriction on dollar remittance was part of efforts to increase their foreign exchange reserves,” Mr Antony said.
Ajith Kolassery, director general of NoRKA-Roots, the field agency of the Department of Non-Resident Keralites Affairs (NoRKA), Government of Kerala, said that the state government has received numerous complaints in this regard. “We will bring this issue to the attention of the Union Government as the Ministry of External Affairs can resolve this issue through bilateral talks,” said Mr. Kolassery. Meanwhile, various recruitment agencies are not relenting in recruiting Indians, including Keralites, to the Maldives despite the exchange issues.
There is a huge demand for Indian teachers and health workers along with hospitality sector personnel in the Maldives. Agencies charge around Rs 2.5 to 4 lakh for recruiting people to Maldives from India. Relations between the two countries were strained in 2023 following derogatory remarks by Maldivian ministers and the subsequent “India Out” campaign, followed by a “Boycott Maldives” social media campaign in India. However, ties were almost restored when Prime Minister Narendra Modi visited Maldives recently on an invitation extended by the President of Maldives.
Published – 28 Oct 2025 20:02 IST
