The Reserve Bank of India (RBI) on Monday entered into a Currency Swap Agreement with the Maldives Monetary Authority (MMA). This was done under the SAARC Currency Swap Framework 2024-27.
The RBI, in its statement, said the agreement would be valid till June 18, 2027.
Under the agreement, the MMA is eligible for financing support from the RBI amounting to USD 400 million under the US Dollar/ Euro Swap Window and INR 30 billion under the INR Swap Window.
Notably, the SAARC Currency Swap Framework came into operation on November 15, 2012, to provide a backstop line of funding for short-term foreign exchange liquidity requirements or short-term balance of payments stress till longer-term arrangements are made.
Earlier in the day, Prime Minister Narendra Modi, while addressing President Mohamed Muizzu at Hyderabad House during his five-day official visit to India, announced the launch of the RuPay Card in the Maldives.
“We have focused on digital connectivity. The RuPay card was launched in the Maldives. In the future, we will work to connect India and the Maldives through UPI as well,” the PM said.
This initiative comes under the financial collaboration between the two countries.
PM Modi also highlighted the currency swap agreement between India and the Maldives, valued at USD 400 million and INR 3,000 crore.
Additionally, he hinted at the potential opening of an Indian Consulate in Addu city and a Maldivian Consulate in Bangalore.