Which framework did India implement in 2024 to enhance regional financial stability within the SAARC region?
Show answer & explanation
Correct answer: B
Explanation
The correct answer is option 2 i.e. SAARC Currency Swap Framework (2024-27).
In 2024, India (through the RBI) revised its SAARC Currency Swap Arrangement framework for the period 2024–27, with the aim of strengthening financial cooperation and regional stability.
A key feature of the new framework is an INR Swap Window with a corpus of ₹250 billion, allowing SAARC nations to get swap support in Indian rupees.
This framework provides a financial back-stop to SAARC central banks for short-term FX liquidity needs or balance-of-payments pressures.