India Approves Rs 30 billion for Maldives under SAARC Currency Swap

Current Context: On April 23, 2026, India authorized a ₹30 billion (₹3,000 crore) drawdown for the Maldives under the SAARC Currency Swap Framework (2024–2027).

• The announcement was made by the Indian High Commission in Malé, coinciding with Maldives settling its earlier $400 million swap facility (Oct 2024).
• Aim: Provide immediate liquidity relief, strengthen foreign exchange reserves, and support Maldives in managing balance‑of‑payment pressures.
• The facility was released under the INR Swap Window, allowing SAARC nations to swap local currency for Indian Rupees.
• Since 2012, the RBI has extended $1.1 billion aggregate swap support to Maldives, highlighting India’s consistent role as a stabilizer.
• The move reflects India’s Neighbourhood First policy and Vision MAHASAGAR, positioning India as Maldives’ “first responder” in times of financial stress.
• By settling the $400 mn debt and accessing ₹30 bn INR swap, Maldives ensured liquidity continuity and debt management stability.

Question:

Q.1 On April 23, 2026, India authorized how much drawdown for the Maldives under the SAARC Currency Swap Framework (2024–2027)?
a) ₹30 billion
b) ₹20 billion
c) ₹10 billion
d) ₹50 billion

Answer: a) India approved a ₹30 billion (₹3,000 crore) drawdown for the Maldives under the SAARC Currency Swap Framework to provide liquidity support and strengthen the country’s financial stability.