The Reserve Bank of India has come out with the revised framework of the currency swap arrangement available for SAARC countries from 2024 to 2027, done in association with the Government of India. Therefore, this would imply a bilateral swap agreement between the RBI and the central banks of the interested nations in SAARC.
The SAARC Currency Swap Facility was established on 15 November 2012 to provide instant liquidity toward short-term foreign-exchange and balance-of-payment requirements of the SAARC countries pending long-term financing arrangements.
The new Framework introduces a separate window for INR Swap transactions. Appropriately designed for swap in Indian Rupees, the window aggregates Rs 250 billion. Besides, RBI would continue its USD/Euro Swap Window with a cumulative corpus of $2 billion.
The facility under this Currency Swap Facility can be availed by all the SAARC member countries by singing bilateral swap agreements. Besides India, SAARC countries include Afghanistan, Bangladesh, Bhutan, Maldives, Nepal, Pakistan, and Sri Lanka.
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