RBI Announces SAARC Currency Swap Framework 2024-27

Mumbai, Jun 27 (PTI) The Reserve Bank on Thursday introduced a Rs 25,000 crore separate INR Swap Window with various concessions for swap support in Indian Rupee for SAARC countries.

The RBI will continue to offer swap arrangements in USD and Euro under a separate US Dollar/Euro Swap Window with an overall corpus of USD 2 billion, the central bank said while announcing the SAARC Currency Swap Framework for 2024-27.

"Under the Framework for 2024-27, a separate INR Swap Window has been introduced with various concessions for swap support in Indian Rupee. The total corpus of the Rupee support is Rs 250 billion," the RBI said.

The currency swap facility will be available to all SAARC member countries, subject to their signing the bilateral swap agreements.

The RBI, with the concurrence of the central government, decided to put in place a revised Framework on Currency Swap Arrangement for SAARC countries for the period 2024-27.

Under the framework, the RBI said it would enter into bilateral swap agreements with SAARC central banks, who want to avail of the swap facility.

The SAARC Currency Swap Facility came into operation on November 15, 2012, to provide a backstop line of funding for short-term foreign exchange liquidity requirements or balance of payment crises of the SAARC countries till longer term arrangements are made.

SAARC comprises of eight member states -- Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri Lanka.