The Bank of Japan (BOJ), acting as the agent for the Minister of Finance of Japan, and the Reserve Bank of India (RBI) concluded an agreement that expands the maximum amount of the Bilateral Swap Arrangement (BSA) between Japan and India to USD 50 billion. This agreement was signed by Governor Haruhiko Kuroda of the BOJ and Governor Raghuram G. Rajan of the RBI and has become effective as of today.

With this agreement, the current BSA, effective for 3 years from 2012 to 2015, is expanded from the original size of USD 15 billion.

The BSA aims at addressing possible short-term liquidity difficulties and supplementing the existing international financial arrangements, as one of the efforts in strengthening mutual cooperation between Japan and India.

This expansion of the BSA will contribute to the stability of global financial markets including emerging economies.

The BSA shall be effective until December 3, 2015.

Ajit Prasad

Assistant General Manager

Bilateral swap arrangement expanded to enhance short-term liquidity support and strengthen financial cooperation between the two central banks. The amendment to the Bilateral Swap Arrangement between the Bank of Japan (as agent for Japan's Minister of Finance) and the Reserve Bank of India increases the arrangement's maximum size, was executed by the respective governors and became effective on signing. The arrangement provides short term liquidity support, supplements international financial arrangements, strengthens central bank cooperation, and is operative until December 3, 2015.