Cabinet approves amendments to currency swap systems for SAARC nations

The Union Cabinet Wednesday approved amendments to the framework on currency swap arrangement for SAARC member countries by incorporating a stand-by facility of USD 400 million. The facility would enable India to provide a prompt response to the current request from SAARC member countries for availing the swap amount exceeding the present limit prescribed under the SAARC Swap Framework.

The Reserve Bank will negotiate the operational details bilaterally with the central banks of the SAARC countries availing the Standby Swap, an official statement said. "The Union Cabinet, chaired by Prime Minister Narendra Modi has given ex-post facto approval for amendment to the 'Framework on Currency Swap Arrangement for SAARC Member Countries' to incorporate a 'Standby Swap' amounting to USD 400 million operated within the overall size of the Facility of USD 2 billion," the statement added. Besides India, the other members of SAARC grouping are Afghanistan, Pakistan, Sri Lanka, Bangladesh, Bhutan, Nepal and Maldives.

(With inputs from agencies.)