Exim Bank signs ₹4,850 crore LOC with Maldives govt for development projects. RBI notifies dealer banks on operational guidelines for disbursement.
₹4,850 Crore Line of Credit to Maldives for Development Projects
The Export-Import Bank of India (Exim Bank), with Government of India support, has entered into an agreement dated July 25, 2025, to extend a Line of Credit (LOC) of ₹4,850 crores to the Government of Maldives. The Reserve Bank of India (RBI) issued operational guidelines on September 23, 2026, to all Category-I Authorised Dealer Banks for its implementation.
The LOC aims to finance developmental projects in the Maldives, particularly in infrastructure, energy, and healthcare sectors, and will be disbursed through designated banking channels under framework terms set by Exim Bank. The facility reflects India’s strategic economic engagement with neighbouring countries under its development diplomacy initiatives.
Banking practitioners should note the reporting responsibilities, foreign exchange risk management protocols, and documentation standards applicable to project-based disbursements under government-backed LOCs. Transactions under this facility are governed by the Foreign Exchange Management Act and bilateral agreements.