Exim Bank’s ₹4,850 crore line of credit to Maldives: at least 75% of contract value to be supplied from India, no agency commission — A.P. (DIR Series) Circular No. 22
RBI has notified the terms of the Government of India supported Line of Credit of ₹4,850 crore extended by Exim Bank to the Government of Maldives for developmental projects. The agreement is effective from 27 August 2026. Goods, works and services worth at least 75% of the contract price must be supplied from India, and no agency commission is payable on exports under the LoC.
Key facts
- In force
- LoC agreement effective 27 August 2026; circular dated 23 September 2026
- Who it affects
- Indian exporters, EPC and project contractors bidding for Maldives projects, AD Category-I banks
- What it is
- New facility
- Section
- FEMA & RBI
- Published
- 23 September 2026
In 30 seconds
- A.P. (DIR Series) Circular No. 22 is dated 23 September 2026 and is addressed to all Category-I Authorised Dealer banks.
- Exim Bank’s agreement with the Government of the Republic of Maldives is dated 25 July 2025; the LoC is of ₹4,850 crore.
- The agreement under the LoC is effective from 27 August 2026.
- At least 75% of the contract price is to be supplied by the seller from India; the remaining 25% may be procured from outside India.
- Individual credit agreements under the umbrella LoC will be for a minimum value of ₹500 crore, after projects are identified and approved.
- No agency commission is payable under the LoC; an exporter may pay it from own resources or EEFC balances, after full realisation.
हिंदी में सार
RBI ने A.P. (DIR Series) Circular No. 22 (23 सितंबर 2026) से बताया है कि Exim Bank ने मालदीव सरकार को वहाँ की विकास परियोजनाओं के लिए भारत सरकार समर्थित ₹4,850 करोड़ की Line of Credit दी है, जो 27 अगस्त 2026 से प्रभावी है। अनुबंध मूल्य का कम से कम 75% माल, काम और सेवाएँ भारत से देनी होंगी। इस LoC के निर्यात पर agency commission देय नहीं है; निर्यातक चाहे तो अपने संसाधनों या EEFC खाते से, पूरी रकम वसूल होने के बाद, दे सकता है।
The line of credit
By A.P. (DIR Series) Circular No. 22 dated 23 September 2026 (RBI/2026-2027/269), the Reserve Bank of India has informed Category-I Authorised Dealer banks that the Export-Import Bank of India (Exim Bank) has entered into an agreement dated 25 July 2025 with the Government of the Republic of Maldives. Under it, a Government of India supported Line of Credit (LoC) of ₹4,850 crore is made available for financing various developmental projects in Maldives.
Terms at a glance
| Point | What the circular says |
|---|---|
| Amount | ₹4,850 crore (Rupees Four Thousand Eight Hundred and Fifty crores only) |
| Borrower | Government of the Republic of Maldives |
| Purpose | Financing various developmental projects in Maldives |
| Effective date of the agreement | 27 August 2026 |
| What can be exported | Eligible goods and services from India, as defined under the agreement, subject to their eligibility under the Foreign Trade Policy and whose purchase Exim Bank agrees to finance |
| Indian content | Goods, works and services of at least 75% of the contract price to be supplied by the seller from India; the remaining 25% may be procured by the seller from outside India for the eligible contract |
| Structure | Individual credit agreements to be signed under the umbrella LoC, for a minimum value of ₹500 crore, after identification and approval of the projects to be financed under each |
| Last date for disbursement | 48 months after the scheduled completion date of the contract |
Export declaration
Shipments under the LoC are to be declared in the Export Declaration Form / Shipping Bill as per the instructions issued by the Reserve Bank from time to time.
Agency commission
No agency commission is payable for export under this LoC. If required, however, the exporter may use its own resources or the balances in its Exchange Earners’ Foreign Currency (EEFC) Account to pay commission in any foreign currency. AD Category-I banks may allow such a remittance after realisation of the full eligible value of export, subject to compliance with the existing instructions on payment of agency commission.
What exporters and contractors should do
- Check whether your goods, works or services are eligible under the agreement and under the Foreign Trade Policy before bidding.
- Plan sourcing so that at least 75% of the contract price is supplied from India.
- Do not build agency commission into the LoC-financed value; if commission must be paid, it comes from own funds or EEFC balances, and only after full realisation.
- Get the complete details of the LoC from Exim Bank’s office at Centre One, Floor 21, World Trade Centre Complex, Cuffe Parade, Mumbai 400 005, or from www.eximbankindia.in — the circular asks AD banks to advise exporters accordingly.
The directions are issued under sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999 and are without prejudice to permissions or approvals required under any other law.
Questions and answers
How much is the Exim Bank line of credit to Maldives?
₹4,850 crore. It is a Government of India supported Line of Credit to the Government of the Republic of Maldives for financing various developmental projects in Maldives.
How much of the contract must be sourced from India?
Goods, works and services of the value of at least 75% of the contract price are to be supplied by the seller from India. The remaining 25% may be procured from outside India for the eligible contract.
Is agency commission allowed on exports under this LoC?
No agency commission is payable under the LoC. An exporter may, if required, pay commission from own resources or EEFC account balances; AD banks may allow that remittance after realisation of the full eligible value of export.
When does the LoC take effect and until when can it be disbursed?
The agreement is effective from 27 August 2026. The last date for disbursement is 48 months after the scheduled completion date of the contract.
Where can exporters get the full terms?
From Exim Bank’s office at Centre One, Floor 21, World Trade Centre Complex, Cuffe Parade, Mumbai 400 005, or its website www.eximbankindia.in.
Published 23 September 2026. Updated 9 October 2026. This report is for general information and is not professional advice. Read the source document before acting on it.