The Bank of Japan (BOJ) and the Reserve Bank of India (RBI) on 11 January 2014 agreed to expand the maximum amount of the Bilateral Swap Agreement (BSA) to 50 billion dollars between the two countries. The agreement was signed by Raghuram Rajan, the Governor of RBI and Haruhiko Kurodo, the Governor of BOJ. The agreement came into force from the day of the signing of the agreement.
With this agreement, the current BSA would be effective for 3 years from 2012 to 2015 and has seen an expansion from the original size of 15 billion dollars. The BSA is aimed to address the short-term liquidity difficulties. It is also aimed towards supplementing the existing mutual cooperation between the Japan and India. It will be effective till 3 December 2015.
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