Rs 4,850-Crore India Credit Line to Maldives Requires 75% Procurement From Indian Suppliers: RBI

New Delhi, Sep 24 (KNN) At least 75 per cent of the value of goods, works and services under eligible contracts financed through the government’s Rs 4,850-crore line of credit to the Maldives must be sourced from India, according to a Reserve Bank of India (RBI) circular issued on Wednesday.

The Export-Import Bank of India (Exim Bank) entered into an agreement with the Maldivian government on July 25, 2025, to provide the credit line for development projects in the island nation. The facility became effective on August 27, 2026.

75% Procurement To Come From India

Under the agreement, Indian exporters and suppliers are expected to account for the bulk of procurement under projects financed through the facility.

In the circular, the RBI said, “Under this Agreement, goods, works and services of the value of at least 75 per cent of the contract price (as may be applicable) shall be supplied by the Seller from India,” as quoted by ANI. 

The remaining 25 per cent can be procured from outside India for eligible contracts.

Exports financed under the arrangement will be permitted subject to eligibility under the government’s Foreign Trade Policy and approval for financing by Exim Bank.

Individual Projects To Have Minimum Rs 500-Crore Credit

Individual credit agreements will be signed under the umbrella facility after projects are identified and approved. Each such credit agreement will have a minimum value of Rs 500 crore.

The last date for disbursement under individual projects will be 48 months after the scheduled completion date of the relevant contract.

Shipments financed through the credit line will have to be declared through the Export Declaration Form or Shipping Bill in accordance with existing RBI instructions.

No agency commission will be payable for exports under the facility. However, exporters may use their own resources or balances in Exchange Earners’ Foreign Currency Accounts for such payments, subject to applicable regulations.

The RBI has directed authorised dealer banks to inform their exporter clients about the facility and refer them to Exim Bank for further details.

(KNN Bureau)