India’s Exim Bank has extended a Government of India-supported Line of Credit (LOC) worth ₹4,850 crores to the Government of Maldives. This Exim Bank LOC for Maldives will finance various developmental projects across the island nation. The Reserve Bank of India formally notified all Category-I Authorised Dealer banks about this arrangement on September 23, 2026.
Key Details of the Exim Bank LOC for Maldives
Exim Bank signed the agreement with the Maldivian government on July 25, 2025. However, the agreement became effective only from August 27, 2026. Under this LOC, at least 75% of goods, works, and services must come from India. The remaining 25% may be sourced from outside India by the seller.
The disbursement window will remain open for 48 months after each contract’s scheduled completion date. Additionally, individual Credit Agreements will be signed under an Umbrella LOC structure, with each credit carrying a minimum value of ₹500 crores. Projects will be identified and approved before each individual agreement is executed.
Exporters must declare all shipments under this LOC in the Export Declaration Form or Shipping Bill. They should follow RBI instructions issued from time to time for this purpose. Therefore, businesses must stay updated with the latest RBI directives before initiating export consignments.
What This Means for Indian Exporters and Banks
Indian exporters stand to benefit significantly from this credit line. As a result, businesses exporting eligible goods and services to Maldives can explore new opportunities under this scheme. Exports must comply with India’s Foreign Trade Policy to qualify for financing under this agreement.
No agency commission is payable for exports under this LOC. However, if exporters need to pay commission, they may use personal resources or their Exchange Earners’ Foreign Currency (EEFC) account balances. AD Category-I banks can allow such remittances only after realising the full eligible export value.
Meanwhile, all Category-I Authorised Dealer banks must inform their exporter clients about this circular. For complete details, exporters should contact Exim Bank directly at Centre One, Floor 21, World Trade Centre Complex, Cuffe Parade, Mumbai 400 005, or visit www.eximbankindia.in.
These directions were issued under Sections 10(4) and 11(1) of the Foreign Exchange Management Act (FEMA), 1999. Read the full RBI notification here.
Source: RBI Notifications
