The Union Cabinet had approved a new Framework on Currency Swap Arrangement with which regional bloc for the period 2024 – 2027?

Correct option is A

The Union Cabinet approved a new Framework on Currency Swap Arrangement for the period 2024–2027 with SAARC countries.

• This framework allows SAARC member countries to access currency swap facilities from India to meet short-term balance of payments needs or manage liquidity pressures.

• The arrangement is aimed at:

  • Promoting financial stability in the South Asian region

  • Strengthening regional economic cooperation

  • Enhancing the role of the Indian Rupee in regional trade and finance

Under this framework, the Reserve Bank of India (RBI) enters into bilateral swap agreements with SAARC central banks, enabling them to draw swaps in USD, Euro, or Indian Rupees, subject to agreed limits.