Reserve Bank of India and Bank of Japan have signed a Bilateral Swap Arrangement (BSA). The BSA was negotiated between India and Japan during the visit of Prime Minister Narendra Modi to Tokyo in October 2018. The BSA provides for India to access 75 billion US dollars whereas the earlier BSA had provided for 50 billion dollars.
The BSA was approved by the Union Cabinet in January. India can access the agreed amount of 75 billion dollars for its domestic currency, for the purpose of maintaining an appropriate level of balance of payments or short-term liquidity.
Source: News On AIR
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