On June 27, the Reserve Bank of India announced that, with the approval of the Government of India, a new Currency Swap Arrangement Framework for SAARC countries will be implemented by the central bank from 2024 to 2027.

Within this Framework, RBI will engage in bilateral swap agreements with central banks of SAARC countries interested in utilizing the swap facility.

The RBI stated that the SAARC Currency Swap Facility started on November 15, 2012 to offer funding for short-term foreign exchange needs or balance of payment crises of SAARC countries until longer-term solutions are arranged.



Introduced within the 2024-27 Framework, a distinct INR Swap Window has been implemented with different benefits to aid in Indian Rupee swaps. The overall amount of support for the Rupee is Rs250 billion.

According to a press release, the RBI plans to provide a swap arrangement in US$ and Euro through a dedicated US Dollar/Euro Swap Window with a total amount of US$ 2 billion.

The RBI announced that the Currency Swap Facility will be accessible to all SAARC member nations, provided they participate in signing the bilateral swap agreements.

Also Read: Crypto Tax in India: Everything you need to know