India Approves Rollover of ₹30 Billion Currency Swap Facility for Maldives

New Delhi: The Government of India has approved the rollover of a ₹30 billion (INR 30 billion) currency swap facility for the Maldives, reinforcing its support for the island nation’s financial stability.

The facility falls under the Framework on Currency Swap Arrangement for SAARC countries. The arrangement was signed between the Reserve Bank of India (RBI) and the Maldives Monetary Authority during the state visit of Maldivian President H.E. Dr. Mohamed Muizzu to India in October 2024. The first drawdown of the ₹30 billion facility was extended to the Maldives on April 23, 2026.

Under the Framework Arrangement for 2024-27, the bilateral INR currency swap offers several concessions, including favourable interest rates and other terms. Since the framework’s inception in 2012, the RBI has provided aggregate swap support exceeding USD 1.1 billion to the Maldives.

Beyond the swap facility, India has also subscribed to two long-term Treasury Bonds (T-bonds) worth USD 250 million and USD 100 million. In addition, three T-Bills amounting to USD 150 million that India had subscribed to have been settled, with the Government of India covering USD 42.8 million in interest costs incurred by the Maldives.

These instruments -- the currency swap facility and the subscription to T-bonds and T-Bills -- have played a significant role in sustaining the financial stability of the Maldives.

Maldives holds a special place in India’s Neighbourhood First Policy and Vision MAHASAGAR (Mutual and Holistic Advancement for Security and Growth Across Regions). India remains committed to deepening its bilateral relationship with the Maldives, including through the implementation of the Joint Vision for a ‘Comprehensive Economic and Maritime Security Partnership’ adopted during President Muizzu’s October 2024 visit to India.

The High Commission of India in Maldives issued the press release on October 16, 2026, underscoring New Delhi’s continued commitment to supporting the people and Government of Maldives.