CURRENT AFFAIRS

Detailed explanation-1: -The Reserve Bank of India (RBI) has signed a Currency Swap Agreement with the Maldives Monetary Authority (MMA) under the SAARC Currency Swap Framework.

Detailed explanation-2: -The SAARC currency swap facility came into operation on 15th November, 2012. The RBI can offer a swap arrangement within the overall corpus of USD 2 billion. The swap drawals can be made in US dollar, euro or Indian rupee. The framework provides certain concessions for swap drawals in Indian rupee.

Detailed explanation-3: -The RBI follows the minimum reserve system, wherein it has to maintain a minimum quantity of gold bullion as reserves to issue currency.

Detailed explanation-4: -Industrial Reconstruction Bank of India (RBI) was so renamed in place of Industrial Reconstruction Corporation Ltd.

Detailed explanation-5: -A foreign currency swap is an agreement between two foreign parties to swap interest payments on a loan made in one currency for interest payments on a loan made in another currency. A foreign currency swap can involve exchanging principal, as well. This would be exchanged back when the agreement ends.