RBI Releases ₹3,000 Crore Swap Aid to Maldives Under SAARC Framework

India confirmed on 25 April 2026 that the Reserve Bank of India has approved the first withdrawal of ₹30 billion (about ₹3,000 crore) for the Maldives under the SAARC Currency Swap Framework. The drawdown takes place under the rupee swap line agreed between the RBI and the Maldives Monetary Authority during the state visit of the Maldivian President to New Delhi in October 2024.

The currency swap will help the Maldives manage short-term liquidity stress, stabilise its foreign-exchange reserves and meet external payment obligations without sharp pressure on the rufiyaa. Importantly, the move follows the Maldives repaying an earlier $400 million swap facility availed under the same bilateral framework — signalling that earlier support was rolled back in an orderly manner.

The SAARC Currency Swap Framework was first put in place by India in 2012 to provide a backstop for short-term foreign-exchange liquidity needs of member countries. Since then, India has cumulatively extended swap support of about $1.1 billion to the Maldives across multiple drawdowns. The framework allows participating central banks to access US dollar, euro or rupee liquidity for short tenors against their domestic currency.

The decision strengthens the 'Neighbourhood First' and SAGAR (Security and Growth for All in the Region) approaches in Indian foreign policy. It also signals a pragmatic reset of India–Maldives relations, where economic cooperation is being prioritised even as both governments work through earlier political differences over defence and infrastructure.

Exam angle: Candidates should know SAARC has eight members (Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, Sri Lanka), that the SAARC Currency Swap Framework dates from 2012, and that the rupee leg of the framework allows up to ₹250 billion across all members. Linkages with the Neighbourhood First, SAGAR and MAHASAGAR doctrines are frequently asked in UPSC and SSC.