“This is atrocious, to say the least. We really don’t know what is going on. We feel like birds having wings, but chained to the ground.”
An Indian teacher, who has been working in the Maldives for some years, thus summarised the tricky situation that thousands of his countrymen face in the South Asian country. The State Bank of India (SBI) branch in Malé, the medium for expatriates in the Maldives to send money to their families back home, has capped the upper monthly remittance at $150—which is around ₹13,000. While many Indians in the country earn six-figure salaries, the cap means the amount that reaches their families is hardly enough to meet domestic expenditure. Their SBI ATM cards cannot be swiped or used for online payments outside the country either. Consequently, their families are left to fend for themselves.
Indians in a fix
Teachers and hospital technicians usually receive salaries around 15,000 Rufiyaa (MVR), whereas nurses earn approximately 20,000 MVR, with doctors receiving even higher salaries. They wouldn’t have been affected if they were paid in USD. Sadly, only those working in the tourism industry get their salaries in dollar.
The remittance cap: Story so far
In the last decade, high-salary employees were permitted to send home amounts ranging from $700 to $1,200—depending on their profession. They could send at least $500 allowed in the first half of the month, and another $200 in the second half. But the Maldives, a tourist hotbed, was struck hard by the coronavirus pandemic, and as a consequence, the SBI not only ended the mid-month remittance option but also brought down the total transferable sum to $1,000.
While the situation was still somehow manageable for Indians initially, the real blow came in 2024 when the SBI further brought down the outward remittance cap to $400 for all professions. Earlier this month, the limit was drastically reduced again: Indians can now send just $150 to their kin—a sum that is less than 15% of what they earn.
"Indian teachers are the worst hit group. It is sad that our countrymen in the resort and other hospitality employees, who get paid in dollars are not understanding our peril. Since teachers don't have such privileges, we will lose a great percentage of our hard-earned money to the private agencies. Thus, SBI becoming reasonable is our only hope. It is also shameful that only Indians are being affected by the move despite Maldives' organised sectors including workers from most of our neighbouring countries," said Kevin Jacob, a senior teacher from Dhidhdhoo island.
What is SBI saying?
The SBI, in a notification, meanwhile, blamed the low inflow of foreign exchange for the situation. "As the inflow of foreign exchange to SBI remains very low, we are unable to sustain the current salary remittance limits provided to Indian expatriates. Please be assured that we are closely monitoring the situation and will review these limits periodically. Our endeavour is to restore normal limits as soon as the foreign exchange availability improves,” it said.
Emotional and financial toll
“Most of us have school-going children, ill parents, and pending loans and EMIs. The whole reason for people leaving the comfort of homes behind to work in a foreign land is for the well-being of their families. What is the point of us toiling here if the benefits of our sweat are not accessible to them?” Kerala-native Anjana Joseph, a registered nurse at Ha Alif Atoll Hospital, said.
There is a huge demand for Indian doctors, nurses, and teachers in Maldives, and recruitment agencies involved charge candidates up to a few lakhs. Most people depend on bank loans or alternative credit options to find this sum in the hope of repaying it once they start earning. The new capping by the SBI has come as a bolt from the blue for most people.
“There are several recent joiners at our hospital who owe a few lakh rupees as a part of their travel. With the restrictions in place, how can they manage? Do you think new recruits will arrive with the issue persisting? It can affect the medical sector altogether,” Anjana asked.
What is happening in Maldives?
As per reports, the Maldives is under significant stress, struggling to rebuild its foreign exchange reserves to meet debt obligations. The capping on dollar remittance was part of efforts to increase the country's foreign exchange reserve. Major repayments are due in the coming years, with a large repayment is expected in 2026.
Meanwhile, Maldives Monetary Authority (MMA), the country's banking regulator, has reportedly introduced new regulations under which transactions made in foreign currency outside the exempted categories can now attract fines ranging from 10,000 MVR to 1 million MVR (₹57,500 to ₹57.5 lakh), according to an Onmanorama report.
Such steps will fan the flames of black markets, an Indian radiographer, who is working in the Maldives for 20 years, pointed out. “This is not rocket science. When you are restricted from sending a decent amount to your dependants, people will be forced to look for alternatives like agencies,” he said.
"Most of these teachers send money home to support their families. And yet, they’ve been here for years, teaching our kids with so much care and commitment. I truly hope this decision is reviewed and reversed soon. These teachers deserve our respect and support, not added stress," Dr Aishath Ali, the former Minister of Education in the Maldives, wrote on Facebook. The NRIs feel it is an unjustified move by the SBI and the Indian High Commission needs to act.
Has the government intervened?
“Given the seriousness of the issue, the High Commission has been actively and regularly engaging with the Ministry of Foreign Affairs, Government of Maldives, the Maldives Monetary Authority, and the relevant Maldivian authorities as well as the concerned in India, to ameliorate the remittance challenges and help resolve the issue at the earliest. In close coordination with the State Bank of India, this week also, we have taken up the matter with the Maldivian authorities to explore ways to address the problem,” an official release from the High Commission of India earlier this week read.
During the time of compiling this report, two representatives of the expats were able to meet with the High Commissioner. They expressed confidence that the discussions were progressing positively. Maldives President Mohamed Muizzu was also send a petition with the signatures of over 800 Indian expatriates, requesting a favourabile action.
Earlier, NoRKA-Roots, the field agency of the Kerala government’s Department of Non-Resident Keralites Affairs (NoRKA), had confirmed that the issue was brought to their notice and they were about to notify the Ministry of External Affairs of the same. The issue needed to be sorted out at the bilateral level, NoRKA-Roots officials reportedly told The Hindu.
On October 16, Lok Sabha MP representing Ernakulam, Hibi Eden, had written to the High Commissioner of India requesting action. Later, many prominent politicians across party lines have extended their support to the NRIs in the archipelagic nation.