The Reserve Bank of India (RBI) said Monday that it has engaged into a currency swap arrangement with the Maldives Monetary Authority (MMA) under the SAARC Currency Swap Framework 2024-27.

According to the agreement, the MMA is eligible for RBI funding support of USD 400 million via the US Dollar/Euro Swap Window and Rs 30 billion (Rs 3,000 crore) under the INR Swap Window.

The RBI said the accord will remain active until June 18, 2027. The SAARC Currency Swap Framework went into effect on November 15, 2012, to offer a standby line of finance for short-term foreign exchange liquidity needs or short-term balance of payments stress until longer-term arrangements are completed.

Along with launching the Rupay card in the Maldives and opening a new runway at Hanimadhoo International Airport, Prime Minister Narendra Modi and visiting Maldivian President Mohamed Muizzu also decided to further improve their bilateral ties, which had reached a rough spot earlier this year.

“We have focused on digital connectivity. The Maldives hosted the debut of the RuPay card. We would endeavor in the future to establish a UPI connection between India and the Maldives as well," the PM stated. This project is a result of the two nations' financial cooperation.

USD 400 million and INR 3,000 crore currency swap deal between India and the Maldives was also mentioned by PM Modi.

During his four-day state visit, Muizzu met with Prime Minister Modi at Hyderabad House in this city.