The Union Cabinet chaired by Prime Minister Narendra Modi gave its approval of USD 75 Billion for entering into a Bilateral Swap Arrangement (BSA), a currency swap agreement, between India and Japan thereby authorizing RBI to sign an agreement between Reserve Bank of India and Bank of Japan.
The agreement is concluded between the premiers of both the countries at a summit level meeting at Yamanashi, Japan. It is essentially meant to exchange and re-exchange a maximum amount of USD 75 Billion for maintaining the appropriate levels of the balance of payments for meeting short-term deficiencies in foreign payments.
This arrangement enables both countries to use the agreed amount of capital. Such an agreement is an exemplar mutual cooperation between the two countries for helping each other.