The Reserve Bank of India and Bank of Japan have signed an agreement for Bilateral Swap Arrangement (BSA) between the two countries, an official statement said on Thursday.
The BSA was negotiated between India and Japan during the visit of Prime Minister Narendra Modi to Tokyo on October 29 last year. It provides for India to access 75 billion in US dollars while the earlier BSA provided for 50 billion dollars.
The agreement for the BSA has become effective from Thursday. “India can access 75 billion dollars for its domestic currency, for the purpose of maintaining an appropriate level of balance of payments or short-term liquidity.” said the statement issued by Finance Ministry.
“The government of India welcomes BSA effectiveness and expresses its gratitude to Japan for agreeing to enter into this arrangement. This is in the spirit of strong partnership and carries out its strategic partnership further. This financial cooperation would further enhance the strong economic ties between India and Japan.”