Currency swap arrangement for SAARC member countries.

The Union Cabinet headed by Prime Minister Narendra Modi has approved currency swap arrangement for SAARC member countries.
The amendments incorporate a standby facility of USD 400 million. This stand-by facility enables 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.
SAARC Swap Framework: It was approved by the Government of India on March 1st, 2012. Under the framework RBl offers swaps of varying sizes to each SAARC Member countries depending on their two months import requirement, not exceeding US$ 2 billion in total, in USD, Euro or INR. Benefits to SAARC and India The agreement has enabled India to strengthen its ties with the SAARC countries together with improVing financial stability in the region. This agreement also bolsters the credibility of India among the SAARC countries.