India Approves Rollover of ₹3,000 Crore Currency Swap for Maldives
The Government of India has approved the rollover of a ₹3,000 crore currency swap facility for the Maldives. The financial assistance operates under the Reserve Bank of India's SAARC Currency Swap Framework 2024–27 and takes effect on 23 October 2026.
What happened
The Government of India has approved the request of the Government of Maldives to execute the first rollover of the ₹30 billion (₹3,000 crore) currency swap facility. This rollover will officially take effect on 23 October 2026.
This arrangement operates under the Reserve Bank of India's Framework on Currency Swap Arrangement for SAARC Countries (2024–27). Alongside the INR swap window, the agreement enables the Maldives to access up to US$ 400 million under the US Dollar/Euro Swap Window.
The facilitation of this currency swap follows the State Visit of Maldivian President Dr. Mohamed Muizzu to India, building upon the bilateral Currency Swap Agreement formalized between the Reserve Bank of India and the Maldives Monetary Authority on 7 October 2024 in New Delhi.
Important dates
| SAARC Swap Framework Inception | 15 November 2012 |
|---|---|
| Bilateral Currency Swap Agreement Signing | 7 October 2024 |
| Current SAARC Framework Validity Period | 19 June 2024 – 18 June 2027 |
| Initial Drawdown Date for the ₹30 Billion Facility | 23 April 2026 |
| Rollover Effective Date | 23 October 2026 |
📌 Static GK links
- The SAARC Currency Swap Framework originally started on 15 November 2012.
- The current SAARC Currency Swap Framework cycle is valid from 19 June 2024 to 18 June 2027.
- The total aggregate corpus under the SAARC INR Swap Window is ₹250 billion (₹25,000 crore).
- The total corpus under the SAARC US Dollar/Euro Swap Window is US$ 2 billion.
What candidates should do
- Aspirants should note exact financial figures including the ₹3,000 crore swap size and the US$ 400 million Dollar/Euro window limit.
- Memorize the validity period of the current SAARC Currency Swap Framework (2024–2027) and its corpus sizes for banking exams.
- Understand the role of the Reserve Bank of India (RBI) and the Maldives Monetary Authority (MMA) in executing bilateral currency swaps under regional frameworks.
PrepZen analysis
This financial assistance highlights India's strategic economic diplomacy under its 'Neighbourhood First' policy and 'Vision MAHASAGAR'. For banking and finance aspirants, questions from this news item are likely to focus on the institutional framework governing the swap, specific corpus limits, and institutional parties involved such as the RBI and the Maldives Monetary Authority.
Practice questions
Q1. What is the amount of the INR currency swap facility rolled over by India for the Maldives, effective 23 October 2026?
Q2. Under which framework is the currency swap facility for the Maldives executed by the Reserve Bank of India?
Q3. What is the total aggregate corpus under the INR Swap Window of the SAARC Currency Swap Framework 2024–27?
Assistance operates under RBI's SAARC Currency Swap Framework 2024–27.
Agreement enables Maldives to access up to $400 million USD/Euro window.
Facility was formalized following President Mohamed Muizzu's State Visit to India.
🎯 Key Point: India rolled over ₹3,000 crore currency swap facility for Maldives.
FAQs
When does the rollover of the currency swap facility for the Maldives take effect?
The rollover of the ₹3,000 crore currency swap facility takes effect on 23 October 2026.
Which institutions signed the bilateral Currency Swap Agreement for this facility?
The agreement was formalized between the Reserve Bank of India (RBI) and the Maldives Monetary Authority (MMA).
What is the validity period of the current SAARC Currency Swap Framework?
The current SAARC Currency Swap Framework is valid from 19 June 2024 to 18 June 2027.
What is the maximum limit the Maldives can access under the US Dollar/Euro Swap Window of the agreement?
The Maldives Monetary Authority is eligible to access support of up to US$ 400 million under the US Dollar/Euro Swap Window.
Sources and references
- mea.gov.in (www.mea.gov.in) Official
- rbi.org.in (rbi.org.in) Official
- sun.mv (english.sun.mv)
- timesofoman.com (timesofoman.com)
Prepared by PrepZen for exam preparation. Consult the linked sources for original announcements and current details. Corrections policy. Spotted an error? Write to prepzen.app@gmail.com.
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Q4. Which bank was named the 'World's Best Consumer Bank 2026' by Global Finance magazine?
Q5. What is the name of the two-day international central banking seminar inaugurated by RBI in New Delhi?
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