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Consider the following statements regarding India's financial support to the Maldives:
1. The Reserve Bank of India (RBI) administers the SAARC Currency Swap Framework, which was launched in 2012, to provide short-term liquidity support to SAARC member countries.
2. Under the current Currency Swap Agreement, India is providing $400 million through a US Dollar/Euro Swap Window to the Maldives.
3. The agreement includes a provision for a swap of ₹30 billion under the INR Swap Window, valid until June 18, 2027.
Which of the statements given above is/are correct?
  • a)
    1 Only
  • b)
    1 and 2 Only
  • c)
    1 and 3 Only
  • d)
    1, 2 and 3
Correct answer is option 'D'. Can you explain this answer?
Verified Answer
Consider the following statements regarding India's financial support...
1. Statement 1 is correct. The SAARC Currency Swap Framework, which is administered by the Reserve Bank of India (RBI), was indeed launched in 2012. Its primary objective is to provide short-term liquidity support to SAARC member countries during times of financial instability or crisis.
2. Statement 2 is correct. As part of the Currency Swap Agreement with the Maldives, India is providing $400 million through a US Dollar/Euro Swap Window. This is part of India's efforts to support the financial stability of the Maldives.
3. Statement 3 is correct. In addition to the US Dollar/Euro Swap Window, the agreement also includes a provision for a swap of ₹30 billion (approximately $357 million) under the INR Swap Window, and this agreement is valid until June 18, 2027.
All three statements accurately reflect the details of the financial arrangements under the Currency Swap Agreement between India and the Maldives. Therefore, the correct answer is Option D.
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Most Upvoted Answer
Consider the following statements regarding India's financial support...
Understanding India's Financial Support to the Maldives
India has been actively supporting the Maldives through various financial mechanisms, particularly in the context of regional cooperation under SAARC. Let's analyze the statements regarding this support.
Statement 1: SAARC Currency Swap Framework
- The Reserve Bank of India (RBI) does administer the SAARC Currency Swap Framework.
- Launched in 2012, this framework aims to provide short-term liquidity support to SAARC member countries.
- This statement is correct as it highlights India’s role in facilitating regional financial stability.
Statement 2: Current Currency Swap Agreement
- Under the existing Currency Swap Agreement, India is indeed providing $400 million to the Maldives.
- This is facilitated through a US Dollar/Euro Swap Window, reflecting India’s commitment to support the Maldivian economy.
- This statement is also correct as it accurately describes the financial aid provided.
Statement 3: INR Swap Window Agreement
- The agreement does include a provision for a swap of ₹30 billion under the INR Swap Window.
- This swap facility is valid until June 18, 2027, and is part of India's broader strategy to strengthen economic ties with its neighbors.
- This statement is correct as it details the specifics of the agreement.
Conclusion
Since all three statements accurately reflect India's financial support structure to the Maldives, the correct answer is option 'D': 1, 2, and 3.
This financial support is crucial for maintaining economic stability in the Maldives and promoting regional cooperation within SAARC.
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Consider the following statements regarding India's financial support to the Maldives:1. The Reserve Bank of India (RBI) administers the SAARC Currency Swap Framework, which was launched in 2012, to provide short-term liquidity support to SAARC member countries.2. Under the current Currency Swap Agreement, India is providing $400 million through a US Dollar/Euro Swap Window to the Maldives.3. The agreement includes a provision for a swap of ₹30 billion under the INR Swap Window, valid until June 18, 2027.Which of the statements given above is/are correct?a)1 Onlyb)1 and 2 Onlyc)1 and 3 Onlyd)1, 2 and 3Correct answer is option 'D'. Can you explain this answer?
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Consider the following statements regarding India's financial support to the Maldives:1. The Reserve Bank of India (RBI) administers the SAARC Currency Swap Framework, which was launched in 2012, to provide short-term liquidity support to SAARC member countries.2. Under the current Currency Swap Agreement, India is providing $400 million through a US Dollar/Euro Swap Window to the Maldives.3. The agreement includes a provision for a swap of ₹30 billion under the INR Swap Window, valid until June 18, 2027.Which of the statements given above is/are correct?a)1 Onlyb)1 and 2 Onlyc)1 and 3 Onlyd)1, 2 and 3Correct answer is option 'D'. Can you explain this answer? for UPSC 2025 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Consider the following statements regarding India's financial support to the Maldives:1. The Reserve Bank of India (RBI) administers the SAARC Currency Swap Framework, which was launched in 2012, to provide short-term liquidity support to SAARC member countries.2. Under the current Currency Swap Agreement, India is providing $400 million through a US Dollar/Euro Swap Window to the Maldives.3. The agreement includes a provision for a swap of ₹30 billion under the INR Swap Window, valid until June 18, 2027.Which of the statements given above is/are correct?a)1 Onlyb)1 and 2 Onlyc)1 and 3 Onlyd)1, 2 and 3Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for UPSC 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Consider the following statements regarding India's financial support to the Maldives:1. The Reserve Bank of India (RBI) administers the SAARC Currency Swap Framework, which was launched in 2012, to provide short-term liquidity support to SAARC member countries.2. Under the current Currency Swap Agreement, India is providing $400 million through a US Dollar/Euro Swap Window to the Maldives.3. The agreement includes a provision for a swap of ₹30 billion under the INR Swap Window, valid until June 18, 2027.Which of the statements given above is/are correct?a)1 Onlyb)1 and 2 Onlyc)1 and 3 Onlyd)1, 2 and 3Correct answer is option 'D'. Can you explain this answer?.
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