RBI Circular: Exim Bank GOI-Supported Line of Credit for Maldives 2026
The Reserve Bank of India has issued a circular regarding the Export-Import Bank of India (Exim Bank) Government of India-supported Line of Credit (LoC) amounting to ₹ 4,850 crores. This financial arrangement is extended to the Government of the Republic of Maldives for financing various developmental projects in the country.
Overview of the Exim Bank Line of Credit for Maldives
The agreement between Exim Bank and the Government of the Republic of Maldives was officially entered into on July 25, 2025, and became effective on August 27, 2026. Under this umbrella Line of Credit worth ₹ 4,850 crores, individual credit agreements will be signed for a minimum value of ₹ 500 crores following the identification and approval of specific projects. Exporters and Authorised Dealer (AD) Category-I banks must adhere to the regulatory guidelines outlined under the Foreign Exchange Management Act (FEMA), 1999.
Key Details Table
| Feature | Detail |
|---|---|
| Regulatory Body | Reserve Bank of India (RBI) |
| Issuing Department | A.P. (DIR Series) Circular No. 22 |
| Circular Number | RBI/2026-2027/269 |
| Date of Notification | September 23, 2026 |
| Effective Date | August 27, 2026 |
| Partner Nation | Government of the Republic of Maldives |
| Financial Institution | Export-Import Bank of India (Exim Bank) |
| Total Line of Credit Amount | ₹ 4,850 Crores |
| Minimum Umbrella Credit Value | ₹ 500 Crores |
Sourcing and Procurement Guidelines
The export of eligible goods and services from India under this agreement is permitted in accordance with the Foreign Trade Policy of the Government of India. The framework mandates specific sourcing criteria for projects financed through this LoC:
- Domestic Sourcing: Goods, works, and services amounting to at least 75% of the contract price must be supplied by the seller from India.
- External Sourcing: The remaining 25% of goods and services may be procured by the seller from outside India for the purpose of the eligible contract.
- Shipment Declarations: All shipments under this LoC must be declared in the Export Declaration Form or Shipping Bill as per instructions issued by the RBI.
- Agency Commission: No agency commission is payable for exports under the specified LoC, though exporters may utilize their own resources or Exchange Earners’ Foreign Currency Accounts subject to extant regulations.
Important Dates Table
| Event Description | Date |
|---|---|
| Agreement Date | July 25, 2025 |
| Effective Date of LoC | August 27, 2026 |
| Circular Release Date | September 23, 2026 |
Action Required by Authorised Dealer Banks and Exporters
Authorised Dealer (AD) Category-I banks are instructed to bring the circular's contents to the notice of their exporter constituents. Exporters seeking comprehensive details regarding the implementation of the Line of Credit can reach out to the Exim Bank office located at Centre One, Floor 21, World Trade Centre Complex, Cuffe Parade, Mumbai 400 005, or visit the official website at www.eximbankindia.in. All directions have been promulgated pursuant to sections 10(4) and 11(1) of FEMA, 1999.
Frequently Asked Questions
What is the total value of the Line of Credit extended to the Maldives?
The Government of India-supported Line of Credit extended by Exim Bank to the Government of Maldives is ₹ 4,850 crores.
When did the Line of Credit agreement become effective?
The agreement under the LoC became effective from August 27, 2026.
What is the minimum value for individual credit agreements under the umbrella LOC?
Individual credit agreements under the umbrella LOC will be for a minimum value of ₹ 500 crores.
What percentage of goods and services must be sourced from India?
Goods, works, and services of the value of at least 75% of the contract price must be supplied by the seller from India.
Where can exporters obtain complete details about the LoC?
Exporters can obtain complete details from Exim Bank's office at Centre One, Floor 21, World Trade Centre Complex, Cuffe Parade, Mumbai 400 005 or through their website www.eximbankindia.in.
Official Links
Details are compiled from official notices. Always confirm eligibility, dates and fees on the official website before applying.