- India's approximately USD 507 million (INR 48.5 billion) line of credit for the Maldives became effective on 27 August 2026.
- Projects must be identified and approved before separate credit agreements, each worth at least INR 5 billion, can be signed.
- Indian sellers must supply at least 75% of each contract's value, and funds cannot cover agency commissions.
India’s approximately USD 507 million line of credit for the Maldives is now effective, allowing the two countries to move towards financing individual development projects under the facility.
The Reserve Bank of India said the INR 48.5 billion agreement took effect on 27 August 2026. India’s Export-Import Bank signed the agreement with the Maldivian government in July 2025, but projects must be identified and approved before separate credit agreements can be signed. Each agreement must be worth at least INR 5 billion.
The facility is intended to finance development projects in the Maldives. Under its terms, sellers from India must supply at least 75% of the value of goods, works and services covered by each eligible contract. Sellers may source the remaining 25% from outside India.
The RBI also said the credit line cannot be used to pay agency commissions on exports. Its notice did not identify projects approved for financing or indicate that funds had been disbursed. The facility becoming effective therefore opens the way for project agreements, rather than confirming that construction or payments have begun.
