Thiruvananthapuram, Oct 20 : Around 7,000 Keralaites working in the Maldives are facing a financial crisis following fresh restrictions imposed by the Maldives Monetary Authority (MMA) on dollar remittances.

The new cap limits monthly transfers to just USD 150, significantly impacting expatriates who earn in Maldivian Rufiyaa (MVR).

Previously, the remittance ceiling was USD 700, later reduced to USD 500, and now drastically cut to USD 150 - approximately Rs 13,000.

Many workers say this amount is insufficient to support families back home or repay loans taken to secure employment in the archipelago.

'This is going to be a huge crisis for people like me,' said a Keralaite employed in the Maldives.

'We have families to support and debts to repay. With just Rs 13,000 allowed for remittance, our situation is dire.'

The affected workforce includes professionals in healthcare - doctors, nurses, paramedics - as well as teachers and tourism sector employees.

Economist Mary George noted that the Bank of Maldives, the country's monetary authority, is facing a severe downturn.

'Maldives is currently in a financial situation similar to India's 1990 crisis. Unlike India, which leveraged its gold reserves, the Maldives lacks such options,' she said.

The remittance restrictions have triggered widespread concern among the expatriate community, many of whom fear long-term financial instability if the policy continues.

/IANS