Explanation:

• Reserve Bank of India (RBI) has revised the framework on currency swap arrangement for the South Asian Association for Regional Cooperation (SAARC) countries for 2019-2022.
• This has been done to further financial stability and economic cooperation within the SAARC region.
• Under the framework for 2019-22, the central bank will continue to offer swap arrangement within the overall corpus of $2 billion.
• The swap drawals can be made in US dollar, euro or Indian rupee. The framework provides certain concessions for swap drawals in Indian rupee.
• The facility will be available to all SAARC member countries, subject to their signing the bilateral swap agreements.
• The framework is valid from 14th November, 2019 to 13th November, 2022.
• The word swap means exchange. A currency swap between the two countries is an agreement or contract to exchange currencies with predetermined terms and conditions.
• South Asian Association for Regional Cooperation (SAARC) Consist of Eight Member States: Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri Lanka.