## 1. Purposes and Amounts.

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### Purposes and principal
- Purpose: enhance resources available on a temporary basis to the Fund for crisis prevention and resolution through bilateral borrowing; the Reserve Bank of India (RBI) agrees to purchase promissory notes ("Notes") issued in accordance with this Agreement and the General Terms and Conditions for International Monetary Fund Series H Notes (Annex 1).
- Principal amount: Notes in a cumulative, SDR-denominated, principal amount up to the equivalent of US$10,000 million ("Principal") shall be issued under this Agreement.
- Rolled Back Principal upon NAB reform effectiveness: Principal will be automatically reduced to an SDR-denominated amount up to the equivalent of US$3,901 million (the "Rolled Back Principal").
- Terminology:
  - each such agreement under the March 2020 framework: "2020 Borrowing Agreement"; collectively "2020 Borrowing Agreements".
  - agreements under the August 2016 framework: "2016 Borrowing Agreement(s)".
  - together: "Bilateral Borrowing Agreements".

### Term, activation thresholds, and authorized uses
- Term:
  - Agreement term ends on December 31, 2023.
  - Fund may extend term through December 31, 2024 by Executive Board decision and with RBI consent.
- Activation conditions (only after Managing Director notification):
  - modified FCC is below SDR 100 billion (the "activation threshold");
  - the NAB is activated as of the time of the notification, or there are no available uncommitted resources under the NAB as of that time;
  - activation approved by creditors representing at least 85 percent of the total credit amount committed under the 2020 Borrowing Agreements by creditors eligible to vote.
- Polling and eligibility:
  - Managing Director proposes activation in writing and requests creditors' vote.
  - A creditor is not eligible to vote if its 2020 Borrowing Agreement is not effective at the time of vote, or the relevant member is not included in the Fund's Financial Transactions Plan for transfers of its currency.
- Early approach: Managing Director may approach creditors before modified FCC falls below activation threshold if extraordinary circumstances warrant.
- Deactivation rules:
  - automatic deactivation whenever NAB is no longer activated, unless there are no available uncommitted NAB resources at that time;
  - deactivation if Managing Director notifies Executive Board that modified FCC (excluding Bilateral Borrowing amounts) has risen above activation threshold and either (i) Executive Board determines activation no longer necessary; or (ii) six months elapse since notification without modified FCC falling below activation threshold.
  - if deactivated and modified FCC later falls below activation threshold, activation provisions re-apply.
- Authorized uses while activated:
  - (i) fund any outright purchases made from the General Resources Account ("GRA") during the term; and
  - (ii) approve, during the term, commitments of GRA resources under Fund arrangements whose purchases could be funded by issuing Notes under this Agreement at any time during the period of such commitments, including after expiration or deactivation; commitments covered under (ii) include any commitment whose approval caused the activation threshold to be reached.
- Funding of early repayment of claims:
  - following an activation, resources may be used to fund early repayment of claims under other 2020 Borrowing Agreements if relevant creditors request early repayment per paragraph 7 of the General Terms and Conditions for Series H Notes;
  - Notes may be issued to fund such early repayment for as long as claims under the 2020 Borrowing Agreements remain outstanding, including after expiration or deactivation;
  - Notes issuance shall aim over time to achieve broadly balanced positions among creditors under all Bilateral Borrowing Agreements relative to their commitments.

### Estimates, notices, and limits on issuance
- Estimates and inclusion:
  - Prior to each plan period for use of bilateral borrowed resources, the Fund shall provide the RBI with its best estimates of amounts of Notes expected to be issued under this Agreement during the forthcoming period and revised estimates as warranted.
  - RBI shall not be included in the periodic Financial Transactions Plan, and no Notes shall be issued, if India is not included and not proposed by the Managing Director to be included in the list of countries in the Financial Transactions Plan for transfers of its currency.
  - No Notes shall be issued if RBI was included in the periodic plan but at issuance India's currency is not being used in transfers under the Financial Transactions Plan because of India's balance of payments and reserve position.
  - If India was not included at time of activation vote and is subsequently included, Notes may be issued for purchases made and commitments approved during the activation period unless RBI notifies Fund it does not wish such issuance.
- Notice and payment instruction timings:
  - Fund shall give RBI at least five business days' (Mumbai) notice of intention to issue Notes for purchase.
  - Fund shall provide payment instructions at least two business days (Fund) prior to the value date by a rapid authenticated means (e.g., SWIFT).
  - Exceptional circumstances: notification may be at least three business days (Mumbai) in advance of the value date; RBI will make best efforts to meet such a call.
- Effect of payments and extensions on issuance limits:
  - Payment by the Fund of principal of a Note shall not restore pro tanto the amount of Notes that may be issued under this Agreement.
  - Extension of maturity of a Note in accordance with paragraph 4(a) of the General Terms and Conditions for Series H Notes shall not reduce the amount of Notes that may be issued under this Agreement.

### Denomination, price, and valuation
- Denomination and multiples:
  - Notes denominated in special drawing right (SDR).
  - Issued in multiples of SDR 10 million.
- Purchase price: 100 percent of the principal amount.
- Exchange rates and valuation:
  - Purchases and exchanges made at exchange rate in terms of the SDR established pursuant to Article XIX, Section 7(a) for the second business day of the Fund before the value date.
  - If that date is not a business day in Mumbai, use last preceding business day of the Fund that is also a business day in Mumbai.
  - If Fund changes SDR valuation method, purchases/exchanges made two or more business days of the Fund after effective date use new method.
  - For applying issuance limits, U.S. dollar value of each SDR-denominated Note issued shall be determined and permanently fixed on the value date of issuance based on the U.S. dollar/SDR exchange rate established pursuant to Article XIX, Section 7(a) for the second business day of the Fund before the value date of issuance; if that date is not a business day in Mumbai, use last preceding business day of the Fund that is also a business day in Mumbai.

### Payment mechanics and currency exchanges
- Payment of purchase price:
  - Unless otherwise agreed, RBI shall pay the purchase price of each Note on the Fund's specified value date by transfer of the SDR equivalent amount of Indian rupee to the Fund's account with the designated depository of India.
  - For Notes purchased in accordance with paragraph 2(e), RBI shall ensure balances used in the purchase that are not balances of a freely usable currency can be exchanged for a freely usable currency of its choice.
  - For balances used in the purchase that are balances of a freely usable currency, RBI shall collaborate with the Fund and other members to enable such balances to be exchanged for another freely usable currency.

### Transferability and settlement of questions
- Transfer restrictions:
  - RBI may not transfer any of its rights or obligations under this Agreement except with prior written consent of the Fund.
  - Transfers of Notes subject to transfer restrictions and other limitations set forth in the General Terms and Conditions for Series H Notes.
- Settlement of questions: any question arising under this Agreement shall be settled by mutual agreement between the RBI and the Fund.

### Cooperation with the Fund
- RBI stands ready to cooperate with the Fund in the spirit of IMFC/G-20 commitments as needed and appropriate.

### Transitional arrangements (paragraph 9)
- General transitional rules:
  - Fund shall issue Notes under this Agreement to repay any outstanding claims under RBI's 2016 Borrowing Agreement, subject to paragraph 9(b).
  - Fund may issue Notes to fund purchases under commitments approved during an activation of the 2016 Borrowing Agreements or to fund early repayment of claims under other 2016 Borrowing Agreements in case creditor represents a balance of payments need.
  - Maximum maturity date of claim from repayment shall be the residual maximum maturity date of the repaid claim.
  - Any Notes issued under this Agreement resulting from such repayment shall be considered claims under the 2016 Borrowing Agreements for purposes of funding early repayment in case of balance of payments need and for purposes of special calls under paragraph 23 of Fund Decision No. 16645-(2015).
- Interaction with increased NAB credit arrangement:
  - If claims under RBI's 2016 Borrowing Agreement or this Agreement are outstanding when the increase in India's NAB credit arrangement becomes effective, RBI shall be deemed to request that the Managing Director make calls under India's NAB credit arrangement up to the maximum available amount, taking into account prudential balances, to fund repayment of such claims.
  - If increase in India's NAB credit arrangement and this Agreement enter into effect at same time, repayment of RBI's outstanding claims under the 2016 Borrowing Agreement shall be funded first with calls under India's NAB credit arrangement before Notes are issued under this Agreement pursuant to paragraph 9(a).
  - Repayments of claims resulting from Notes issued under this Agreement in accordance with paragraph 9(b) shall restore pro tanto the amount of Notes that can be issued under this Agreement.
- Excess claims over Rolled Back Principal:
  - If, following repayment under paragraph 9(b), RBI's outstanding claims remain in excess of the Rolled Back Principal (as calculated pursuant to paragraph 5(d)), the Fund shall repay any outstanding claims in excess of the Rolled Back Principal.
  - Claims with shorter remaining maximum maturities shall be repaid before those with longer remaining maximum maturities.
- Additional transitional rules:
  - After entry into force of this Agreement, Fund may no longer issue any Notes under RBI's 2016 Borrowing Agreement.
  - No Note shall be issued under this Agreement that would cause cumulative principal of Notes issued under both this Agreement and the 2016 Borrowing Agreement to:
    - (i) exceed the Principal prior to effectiveness of the increase in India's NAB credit arrangement, or
    - (ii) exceed the Rolled Back Principal upon and after effectiveness of the increase in India's NAB credit arrangement, as calculated pursuant to paragraph 5(d);
    - provided that Notes issued beyond the Rolled Back Principal under (ii) are authorized if, within the same day of issuance, any resulting claim that would exceed the Rolled Back Principal is repaid with a special call under India's NAB credit arrangement and RBI requests such calls in accordance with paragraph 23 of Fund Decision No. 11428-(97/6), as amended.

### Final provisions on execution and effectiveness
- Execution: Agreement may be executed in duplicate counterparts, each deemed an original.
- Effectiveness: Agreement becomes effective on the date last signed below, or on the date on which India provides the concurrence required under Article VII, Section 1(i) of the Fund's Articles of Agreement for Fund borrowing of Indian rupee from the RBI, or on January 1, 2021, whichever is later.

---

### General Terms and Conditions for International Monetary Fund Series H Notes

### Key definitions
- "Applicable Note Purchase Agreement" — the Note Purchase Agreement between the Fund and the original Eligible Purchaser to whom the Fund (i) had issued the Note, or (ii) had issued any Note in cancellation of which the Note (or one or more Notes previously cancelled in exchange for the Note) had been issued.
- "Borrowing Guidelines" — the Guidelines for Borrowing by the Fund.
- "Eligible Purchaser" — (i) a member of the Fund, and (ii) the central bank of a member of the Fund.
- "Eligible Holder" — (i) an Eligible Purchaser, (ii) a fiscal agency designated by a member for Article V, Section 1 (the "fiscal agency of a member"), and (iii) a prescribed SDR holder.
- "Notes" — promissory notes (International Monetary Fund Series H Notes).
- "Permitted Holder" — (i) an Eligible Holder, and (ii) any other official entity in respect of whom the Fund has consented in writing to a transfer of Notes pursuant to subparagraph 6(b).
- "Relevant Member" — for a Permitted Holder that is the central bank or fiscal agency or other official institution of a member, that member.

### Eligible purchasers, holders, and form/delivery (paragraphs 2–3)
- Fund issues Notes solely to Eligible Purchasers; each Eligible Purchaser enters into a Note Purchase Agreement.
- Permitted Holders are the only authorized holders.
- Notes issued only in book entry form; Fund maintains book entry account for each Permitted Holder recording number, issue date, principal amount, series, and maturity date.
- As of the value date of each purchase or transfer, Fund entry constitutes delivery.
- Upon request, Fund will issue a registered Series H Note in the form set out in Annex 2; registered Notes bear issue date equal to value date and, unless agreed otherwise, are kept in custody by the Fund.

### Maturity and extensions (paragraph 4)
- Standard maturity: three months from issue date, except as provided otherwise.
- Fund may elect to extend maturity in additional periods of three months after initial maturity; extensions are automatically deemed elected for all Notes unless Fund notifies Permitted Holder at least five business days (Fund) before a maturity date by rapid authenticated means (e.g., SWIFT) that it does not elect to extend.
- Extension limitations:
  - (i) maturity of any Note purchased to fund GRA purchases shall not be extended later than the tenth anniversary of the date of such Note;
  - (ii) maturity date for Notes purchased to fund early repayment of other creditors' claims shall be a single common maturity date that is the longest remaining maximum maturity of any claim repaid or the tenth anniversary of the date of the relevant Notes being issued to fund early repayment, whichever is earlier.
- Fund shall pay principal on applicable maturity date; if not a business day where payment is made, payment will be next business day and interest will accrue up to payment date.
- Fund may make early payment in part or in full after consultation, provided Fund notifies Permitted Holder at least five business days (Fund) before any such payment by rapid authenticated means.
- On payment of principal and all accrued interest, Fund will cancel a Note; for partial early payments/extensions, Fund cancels note and issues new note for remainder.

### Rate of interest and interest payments (paragraph 5)
- Interest rate: SDR interest rate established by the Fund pursuant to Article XX, Section 3.
- If Fund pays a higher interest rate on outstanding balances from any other comparable borrowing effected pursuant to Article VII, Section 1(i), then the interest rate payable on each Note will be equivalent to that higher rate for as long as it remains in effect.
- Interest accrues daily on the principal amount (including substituted Notes).
- Interest is to be paid promptly after each July 31, October 31, January 31, and April 30.

### Transferability rules (paragraph 6)
- Permitted Holder may transfer all or part of any Note to any Eligible Holder at any time; Fund will use best efforts to arrange transfers to Eligible Holders identified by Fund or transferor.
- Transfers to other official entities require prior written consent of the Fund and may include additional terms approved by the Fund.
- Transfers directly or indirectly to entities that are not Eligible Holders or official entities with Fund's written consent are prohibited.
- Derivative transactions and transfers of participation interests in any Note are prohibited.
- Transferees assume obligations of a Permitted Holder regarding extensions of maturity.
- Transferred Notes remain subject to same terms and conditions as held by transferor, except as provided on early payment rights.
- Price of transferred Note as agreed between transferor and transferee.
- Transfer mechanics: authenticated notice to Fund; Fund cancels transferred Note and issues new Notes to transferee (and transferor if appropriate) with same issue date and maturity date.
- If a Note is transferred during a quarterly period as described in paragraph 5(b), Fund pays interest to the transferee for the whole of that period.

### Early payment at request of certain Permitted Holders (paragraph 7)
- Eligibility for paragraph 7 rights: Permitted Holder must be either (i) an Eligible Purchaser for such Notes, or (ii) a transferee meeting conditions:
  - (A) transferee is a member, or central bank or fiscal agency of a member; and
  - (B) at time of transfer, balance of payments and reserve position of the member or Relevant Member was considered sufficiently strong that its currency was being used in transfers under the Financial Transactions Plan.
- Qualified Permitted Holder may obtain early payment at face value of all or portion of principal if:
  - (i) Permitted Holder represents its balance of payments and reserve position (or that of Relevant Member) justifies early payment; and
  - (ii) Fund, giving the representation the overwhelming benefit of any doubt, determines there is a need for early payment as requested in light of the balance of payments and reserve position.
- After consultation, Fund may make payments pursuant to paragraph 7 in SDRs or a freely usable currency as determined by the Fund, or, with agreement of the Permitted Holder, in currencies of other members included in the Fund's periodic Financial Transactions Plan for transfers.

### Media and modalities of payments (paragraph 8)
- Except as provided in paragraph 7, principal payments made to a Permitted Holder in:
  - (i) the currency borrowed whenever feasible, if the Permitted Holder is the original purchaser;
  - (ii) the currency of the Permitted Holder, if the Permitted Holder is a member of the Fund;
  - (iii) the currency of the Relevant Member, if the Permitted Holder is the central bank or fiscal agency of a member or is a prescribed SDR holder that is an official institution of a member;
  - (iv) special drawing rights (SDRs), if the Permitted Holder is covered by clauses (ii) or (iii) or is otherwise a prescribed SDR holder (subject to Article XIX, Section 4 limits unless member agrees to accept SDRs above that limit);
  - (v) any freely usable currency determined by the Fund in the case of any Permitted Holder;
  - (vi) other currencies included in the Fund's periodic Financial Transactions Plan for transfers, with agreement of the Permitted Holder.
- Interest payments normally in SDRs if Permitted Holder is a member, or central bank or fiscal agency of such member, or a prescribed SDR holder; Fund and Permitted Holder may agree interest be paid in currency of Relevant Member. Payments of interest to other Permitted Holders in a freely usable currency determined by the Fund.
- Currency payments by Fund made by crediting an account specified in advance by Permitted Holder, or, for a Fund member Permitted Holder, by debiting Fund's account with the designated depository of that member.
- SDR payments credited to the SDR Department account of the Permitted Holder or Relevant Member as applicable.

### Effective exchange rates and valuation (paragraphs 9–10)
- Unless otherwise agreed, all currency payments of principal and interest made at exchange rates in terms of the SDR established pursuant to Article XIX, Section 7(a) for the second business day of the Fund before the value date of the payment.
- If that exchange rate determination date is not a business day in the Permitted Holder's principal location, the date will be the last preceding business day of the Fund that is also a business day in the Permitted Holder's principal location.
- If the Fund changes method of valuing the SDR, all payments of principal and interest on the Notes made two or more business days of the Fund after the effective date of the change will be made on the basis of the new method.

### Non-subordination and settlement (paragraphs 11–12)
- Non-subordination: Fund will not take any action that would have the effect of making a Permitted Holder's claim on the Fund from any Note subordinate to claims resulting from any other borrowing effected pursuant to Article VII, Section 1(i).
- Settlement of questions: any question arising under any Note settled by mutual agreement between the relevant Permitted Holder and the Fund.

### Annex 2 — Form of Registered Series H Note (high-level points)
- Note identifies the International Monetary Fund as obligor and promises to pay an amount equivalent to Special Drawing Rights (SDR) on the maturity date, with interest as set forth.
- Note references the General Terms and Conditions and the Applicable Note Purchase Agreement; holders are deemed to have agreed to terms including maturity (and extension options), interest rate, early payment terms, and transfer restrictions.
- Explicit prohibitions:
  - note has not been registered under securities laws;
  - no holder shall sell, assign, dispose of or otherwise transfer the note except to permitted entities (members, central banks, fiscal agencies designated for Article V, prescribed SDR holders, or other official entities with Fund's written consent);
  - derivative transactions and transfers of participation interests in the note are expressly prohibited.
- Interest accrues daily at the SDR interest rate established pursuant to Article XX, Section 3, subject to substitution with any higher comparable borrowing rate paid by the Fund.
- Interest payment schedule: interest paid promptly after each July 31, October 31, January 31, and April 30.
- Interest payments normally in SDRs for members/central banks/fiscal agencies/prescribed SDR holders, with possible agreement to pay in currency of Relevant Member or in a freely usable currency for other holders; SDR payments credited to SDR Department account of registered holder or Relevant Member.

*IMF — pr214-signed-india-2020-borrowing-agreements (1. Purposes and Amounts; General Terms and Conditions for International Monetary Fund Series H Notes)*

### 1. Purposes and Amounts.

### 1. Purposes and Amounts.

### Purposes and Principal
- To enhance the resources available on a temporary basis to the Fund for crisis prevention and resolution through bilateral borrowing, the Reserve Bank of India (RBI) agrees to purchase promissory notes ("Notes") issued in accordance with this Agreement and the General Terms and Conditions for International Monetary Fund Series H Notes (Annex 1).
- Notes in a cumulative, SDR-denominated, principal amount up to the equivalent of US$10,000 million ("Principal") shall be issued under this Agreement.
- Upon the effectiveness of the increase in India's credit arrangement under the Fund's New Arrangements to Borrow (the "NAB") as part of the NAB Reform approved under Decision No. 16645-(2015), adopted January 16, 2020 (the "NAB Reform"), the Principal will be automatically reduced to an SDR-denominated amount up to the equivalent of US$3,901 million (the "Rolled Back Principal").
- Terminology:
  - This Agreement and other bilateral borrowing agreements entered into or amended pursuant to the borrowing framework approved by the Fund in March 2020: each a "2020 Borrowing Agreement"; collectively the "2020 Borrowing Agreements".
  - Bilateral borrowing agreements entered into pursuant to the borrowing framework approved in August 2016: each a "2016 Borrowing Agreement"; collectively the "2016 Borrowing Agreements".
  - The 2020 Borrowing Agreements and the 2016 Borrowing Agreements together: "Bilateral Borrowing Agreements".

### Term, Activation Thresholds, and Use
- Term:
  - The term of this Agreement shall end on December 31, 2023.
  - The Fund may extend the term for one further year through December 31, 2024 by decision of the Executive Board, taking into account the Fund's overall liquidity situation and actual and prospective borrowing requirements, and with the consent of the RBI.
- Activation conditions (2020 Borrowing Agreements may be activated only after Managing Director notification):
  - The Forward Commitment Capacity of the Fund (as defined in Decision No. 14906-(11/38), adopted April 20, 2011, taking into account all available uncommitted resources under the NAB (the "modified FCC")) is below SDR 100 billion (the "activation threshold"); and
  - The NAB is activated as of the time of the notification, or there are no available uncommitted resources under the NAB as of that time; and
  - Activation has been approved by creditors representing at least 85 percent of the total credit amount committed under the 2020 Borrowing Agreements by creditors eligible to vote on such activation.
- Polling and eligibility to vote:
  - For polling eligible creditors, the Managing Director shall propose in writing the activation and request the creditors' vote.
  - A creditor is not eligible to vote if, at the time of the vote, its 2020 Borrowing Agreement is not effective, or the relevant member is not included in the Fund's Financial Transactions Plan for transfers of its currency.
- Early approach to creditors:
  - The Managing Director may approach creditors before the modified FCC is below the activation threshold if extraordinary circumstances warrant to forestall or cope with an impairment of the international monetary system.
- Deactivation rules:
  - 2020 Borrowing Agreements shall be automatically deactivated whenever the NAB is no longer activated, unless there are no available uncommitted resources under the NAB at that time.
  - 2020 Borrowing Agreements shall be deactivated if the Managing Director notifies the Executive Board that the modified FCC (excluding amounts available under Bilateral Borrowing Agreements) has risen above the activation threshold and either:
    - (i) the Executive Board determines that activation is no longer necessary; or
    - (ii) six months have elapsed since the Managing Director's notification and, within that period, the modified FCC (excluding amounts available under the Bilateral Borrowing Agreements) has not fallen below the activation threshold.
  - If, after deactivation under the preceding clause, the modified FCC falls below the activation threshold, paragraph 2(b) activation provisions will apply again.
- Authorized uses while 2020 Borrowing Agreements are activated:
  - (i) Use resources under this Agreement to fund any outright purchases made from the General Resources Account ("GRA") during the term of this Agreement.
  - (ii) Approve, during the term of this Agreement, commitments of GRA resources under Fund arrangements whose purchases could be funded by issuing Notes under this Agreement at any time during the period of such commitments, including after the expiration of the term of this Agreement and during any period in which this Agreement is no longer activated; provided commitments covered under clause (ii) include any commitment whose approval caused the activation threshold to be reached.
- Funding of early repayment of claims:
  - Following an activation specified in paragraph 2(b), resources under this Agreement may be used to fund early repayment of claims under other 2020 Borrowing Agreements if relevant creditors request early repayment in the circumstances specified in paragraph 7 of the General Terms and Conditions for International Monetary Fund Series H Notes.
  - Notes for purchase may be issued under this Agreement to fund such early repayment for as long as claims under the 2020 Borrowing Agreements remain outstanding, including after expiration or deactivation.
  - Notes issuance shall aim over time to achieve broadly balanced positions among creditors under all Bilateral Borrowing Agreements relative to their commitments.

### Estimates, Notices, and Limits on Issuance
- Estimates and inclusion in Financial Transactions Plan:
  - Prior to each plan period for use of bilateral borrowed resources, the Fund shall provide the RBI with its best estimates of amounts of Notes expected to be issued for purchase under this Agreement during the forthcoming period and revised estimates as warranted.
  - The RBI shall not be included in the periodic plan, and no Notes shall be issued for purchase under this Agreement, if India is not included and is not proposed by the Managing Director to be included in the list of countries in the Financial Transactions Plan for transfers of its currency.
  - No Notes shall be issued if the RBI was included in the periodic plan but at issuance India's currency is not being used in transfers under the Financial Transactions Plan because of India's balance of payments and reserve position.
  - If India was not included in the Financial Transactions Plan at the time of the vote on activation and is subsequently included, Notes may be issued for purchases made and commitments approved during the activation period unless and for so long as the RBI notifies the Fund it does not wish such issuance.
- Notice and payment instruction timings:
  - The Fund shall give the RBI at least five business days' (Mumbai) notice of its intention to issue Notes for purchase.
  - The Fund shall provide payment instructions at least two business days (Fund) prior to the value date of the transaction by a rapid authenticated means (e.g., SWIFT).
  - In exceptional circumstances where five business days' notice is not possible, notification shall be at least three business days (Mumbai) in advance of the value date, and the RBI would make best efforts to meet such a call.
- Effect of payments and extensions on issuance limits:
  - Payment by the Fund of the principal amount of a Note shall not restore pro tanto the amount of Notes that may be issued under this Agreement.
  - The extension of the maturity of a Note, or any part thereof, in accordance with paragraph 4(a) of the General Terms and Conditions for Series H Notes shall not reduce the amount of Notes that may be issued under this Agreement.

### Denomination, Price, and Valuation
- Denomination and multiples:
  - Notes shall be denominated in the special drawing right (SDR).
  - Notes shall be issued in multiples of SDR 10 million.
- Purchase price:
  - The purchase price for each Note shall be 100 percent of the principal amount thereof.
- Exchange rates and valuation for purchases and exchanges:
  - Unless otherwise agreed, purchases of Notes and exchanges of currency shall be made at the exchange rate for the relevant currency in terms of the SDR established pursuant to Article XIX, Section 7(a) of the Fund's Articles of Agreement and Fund rules for the second business day of the Fund before the value date of the purchase or exchange.
  - If that exchange rate determination date is not a business day in Mumbai, the date shall be the last preceding business day of the Fund that is also a business day in Mumbai.
  - If the Fund changes the method of valuing the SDR, all purchases and exchanges of currency made two or more business days of the Fund after the effective date of the change shall be made on the basis of the new method of valuation.
  - For applying the limit specified in paragraphs 1(a), 9(c), and 9(e) on Fund issuance of Notes under this Agreement, the U.S. dollar value of each SDR-denominated Note issued shall be determined and permanently fixed on the value date of issuance based on the U.S. dollar/SDR exchange rate established pursuant to Article XIX, Section 7(a) of the Fund's Articles of Agreement and Fund rules for the second business day of the Fund before the value date of issuance. If that exchange rate determination date is not a business day in Mumbai, such date shall be the last preceding business day of the Fund that is also a business day in Mumbai.

### Payment Mechanics and Currency Exchanges
- Payment of purchase price:
  - Unless otherwise agreed, the RBI shall pay the purchase price of each Note on the Fund's specified value date by transfer of the SDR equivalent amount of Indian rupee to the Fund's account with the designated depository of India.
  - For Notes purchased in accordance with paragraph 2(e), the RBI shall ensure that balances used in the purchase that are not balances of a freely usable currency can be exchanged for a freely usable currency of its choice.
  - For balances used in the purchase that are balances of a freely usable currency, the RBI shall collaborate with the Fund and other members to enable such balances to be exchanged for another freely usable currency.

### Transferability and Settlement of Questions
- Transfer restrictions:
  - The RBI may not transfer any of its rights or obligations under this Agreement except with the prior written consent of the Fund.
  - Transfers of Notes may be effected pursuant to, and subject in any event to, the transfer restrictions and other limitations on transfers of the Notes set forth in the General Terms and Conditions for Series H Notes.
- Settlement of questions:
  - Any question arising under this Agreement shall be settled by mutual agreement between the RBI and the Fund.

### Cooperation with the Fund
- The RBI stands ready to cooperate with the Fund in the spirit of IMFC/G-20 commitments as needed and appropriate.

### Transitional Arrangements (paragraph 9)
- General transitional rules regardless of activation:
  - The Fund shall issue Notes for purchase under this Agreement to repay any outstanding claims under the RBI's 2016 Borrowing Agreement, subject to paragraph 9(b).
  - The Fund may issue Notes for purchase under this Agreement to fund purchases under commitments approved during an activation of the 2016 Borrowing Agreements or to fund early repayment of claims under other 2016 Borrowing Agreements in case the creditor represents a balance of payments need.
  - Notwithstanding paragraph 4(a) of the General Terms and Conditions for Series H Notes, the maximum maturity date of the claim from the repayment shall be the residual maximum maturity date of the claim that is repaid with Notes issued under this Agreement.
  - Any Notes issued under this Agreement that result from such repayment shall be considered claims under the 2016 Borrowing Agreements for purposes of funding early repayment in case of balance of payments need and for purposes of special calls under paragraph 23 of Fund Decision No. 16645-(2015), adopted January 16, 2020.
- Interaction with increased NAB credit arrangement (paragraph 9(b)):
  - To the extent that claims under the RBI's 2016 Borrowing Agreement or this Agreement are outstanding when the increase in India's NAB credit arrangement becomes effective, the RBI shall be deemed to request, on behalf of India, that the Managing Director make calls under India's NAB credit arrangement up to the maximum available amount, taking into account the Fund's need for maintaining prudential balances, to fund the repayment of such claims.
  - If the increase in India's NAB credit arrangement and this Agreement enter into effect at the same time, repayment of the RBI's outstanding claims under the RBI's 2016 Borrowing Agreement shall be funded first with calls under India's NAB credit arrangement before Notes are issued under this Agreement pursuant to paragraph 9(a).
  - Repayments of claims resulting from Notes issued under this Agreement in accordance with paragraph 9(b) shall restore pro tanto the amount of Notes that can be issued under this Agreement.
- Excess claims over Rolled Back Principal (paragraph 9(c)):
  - If, following repayment as provided in paragraph 9(b), the RBI's outstanding claims under these agreements remain in excess of the Rolled Back Principal (as calculated pursuant to paragraph 5(d)), the Fund shall repay any outstanding claims in excess of the Rolled Back Principal.
  - Claims with shorter remaining maximum maturities shall be repaid before those with longer remaining maximum maturities.
- Additional transitional rules:
  - After entry into force of this Agreement, the Fund may no longer issue any Notes under the RBI's 2016 Borrowing Agreement.
  - No Note shall be issued under this Agreement that would cause the cumulative principal amount of Notes issued under both this Agreement and the 2016 Borrowing Agreement between the RBI and the Fund to:
    - (i) exceed the Principal prior to the effectiveness of the increase in India's NAB credit arrangement, or
    - (ii) exceed the Rolled Back Principal upon and after the effectiveness of the increase in India's NAB credit arrangement, as calculated pursuant to paragraph 5(d);
    - provided that Notes issued in an amount beyond the Rolled Back Principal under (ii) are authorized if, within the same day of the issuance, any resulting claim that would exceed the Rolled Back Principal is repaid with a special call under India's NAB credit arrangement, and the RBI requests, on behalf of India, that the Managing Director make such calls in accordance with paragraph 23 of Fund Decision No. 11428-(97/6), adopted January 27, 1997 on the NAB, as amended.

### Final Provisions
- Execution and effectiveness:
  - This Agreement may be executed in duplicate counterparts, each deemed an original and both together constituting one instrument.
  - This Agreement shall become effective on the date last signed below, or on the date on which India provides the concurrence required under Article VII, Section 1(i) of the Fund's Articles of Agreement for Fund borrowing of Indian rupee from the RBI, or on January 1, 2021, whichever is later.

*IMF — pr214-signed-india-2020-borrowing-agreements (1. Purposes and Amounts)*

### 1. Definitions. These are the General Terms and Conditions for International Monetary Fund

### 1. Definitions. These are the General Terms and Conditions for International Monetary Fund Series H Notes

### Definitions (key defined terms)
- "Applicable Note Purchase Agreement" — the Note Purchase Agreement between the Fund and the original Eligible Purchaser to whom the Fund (i) had issued the Note, or (ii) had issued any Note in cancellation of which the Note (or one or more Notes previously cancelled in exchange for the Note) had been issued.
- "Borrowing Guidelines" — the Guidelines for Borrowing by the Fund.
- "Eligible Purchaser" — (i) a member of the Fund, and (ii) the central bank of a member of the Fund.
- "Eligible Holder" — (i) an Eligible Purchaser, (ii) a fiscal agency designated by a member of the Fund for purposes of Article V, Section 1 of the Fund's Articles of Agreement (the "fiscal agency of a member"), and (iii) a prescribed SDR holder (official entity prescribed as a holder of special drawing rights pursuant to Article XVII, Section 3).
- "Notes" — the promissory notes (International Monetary Fund Series H Notes) subject to these General Terms and Conditions.
- "Permitted Holder" — (i) an Eligible Holder, and (ii) any other official entity in respect of whom the Fund has consented in writing to a transfer of Notes pursuant to subparagraph 6(b).
- "Relevant Member" — for a Permitted Holder that is the central bank or fiscal agency or other official institution of a member, that member of the Fund.

### Eligible Purchasers and Permitted Holders of Notes (paragraph 2)
- The Fund will issue Notes solely to Eligible Purchasers.
- Each Eligible Purchaser will enter into a Note Purchase Agreement with the Fund governing the terms of its purchases of Notes from the Fund.
- Permitted Holders shall be the only authorized holders of the Notes.

### Form, Delivery and Custody of Notes (paragraph 3)
- Notes will only be issued in book entry form; the Fund will maintain a book entry account for each Permitted Holder recording number, issue date, principal amount, series, and maturity date.
- As of the value date of each purchase or transfer, the Fund will make an entry in its records; making such an entry constitutes delivery of the Note to purchaser/transferee.
- Upon request of a Permitted Holder, the Fund will issue a registered Series H Note substantially in the form set out in Annex 2, including the legend regarding restrictions on transfer.
- Registered Notes will bear as issue date the value date of purchase and be issued in the name of the relevant Permitted Holder.
- Unless otherwise agreed, the Fund will keep registered Notes in custody for the Permitted Holder; acceptance of custody by the Fund constitutes delivery.

### Maturity (paragraph 4)
- Each Note shall have a maturity date that is three months from its issue date, except as otherwise provided in paragraph 4 and in paragraph 7(b)(ii).
- The Fund may, in its sole discretion, elect to extend the maturity date of any Note or portion thereof by additional periods of three months after the initial maturity date; extensions are automatically deemed elected for all Notes unless, at least five business days (Fund) before a maturity date, the Fund notifies a Permitted Holder by a rapid authenticated means of communication (e.g., SWIFT) that the Fund does not elect to extend.
- Limitations on extensions:
  - (i) the maturity date of any Note purchased to fund GRA purchases shall not be extended to a date that is later than the tenth anniversary of the date of such Note;
  - (ii) the maturity date for any Notes purchased to fund the early repayment of other creditors' claims in accordance with paragraph 2(e) of the Applicable Note Purchase Agreement shall be a single common maturity date that is the longest remaining maximum maturity of any claim for which such early repayment has been requested or the tenth anniversary of the date of the relevant Notes being issued to fund early repayment, whichever is earlier.
- The Fund shall pay principal on the applicable maturity date; if the maturity date is not a business day in the place where payment is to be made, payment will be the next business day in that place and interest will accrue up to the payment date.
- The Fund may make early payment in part or in full after consultation with the relevant Permitted Holder, provided the Fund notifies the Permitted Holder at least five business days (Fund) before any such payment by a rapid authenticated means of communication (e.g., SWIFT).
- On payment of principal and all accrued interest the Fund will cancel a Note. For partial early payments or partial extensions, the Fund will cancel the Note and issue a new Note for the remainder with appropriate maturity date.

### Rate of Interest (paragraph 5)
- Each Note bears interest at the SDR interest rate established by the Fund pursuant to Article XX, Section 3 of the Fund's Articles of Agreement.
- If the Fund pays an interest rate higher than the SDR interest rate on outstanding balances from any other borrowing on comparable terms effected pursuant to Article VII, Section 1(i), and for as long as that higher rate remains in effect, the interest rate payable on each Note will be equivalent to the interest rate paid by the Fund on such other comparable borrowing.
- Interest is calculated on the principal amount (including substituted Notes) and accrues daily.
- Interest is to be paid promptly by the Fund after each July 31, October 31, January 31, and April 30.

### Transferability of Notes (paragraph 6)
- A Permitted Holder may transfer at any time all or part of any Note to any Eligible Holder; the Fund will use its best efforts to arrange transfers to Eligible Holders identified by the Fund or the transferor.
- Transfers by a Permitted Holder to an official entity other than an Eligible Holder require the prior written consent of the Fund and may be subject to additional terms and conditions approved by the Fund.
- No transfer directly or indirectly to an entity that is not (i) an Eligible Holder or (ii) an official entity with the Fund's written consent under subparagraph 6(b) is permitted.
- Derivative transactions in respect of any Note, and transfers of participation interests in any Note, are prohibited.
- Transferees assume in full the obligations of a Permitted Holder pursuant to paragraph 4(a) regarding extensions of maturity.
- Transferred Notes remain subject to the same terms and conditions as held by the transferor, except as provided in paragraph 7 on early payment at the request of a Permitted Holder.
- The price of a Note transferred will be as agreed between the transferor and transferee.
- Transfers under subparagraph (a) are effected by a duly authenticated notice of transfer to the Fund stating transferee name, Note being transferred, transferee eligibility, and value date.
- For transfers, the Fund will cancel the transferred Note and, if registered, the transferor must surrender the registered Note for cancellation; the Fund will issue new Notes in transferee's and, where appropriate, transferor's names. The issue date of each new Note will be the issue date of the cancelled Note and new Notes will have the same maturity date (including any extensions).
- If a Note is transferred during a quarterly period as described in paragraph 5(b), the Fund will pay interest to the transferee on the principal amount of the Note for the whole of that period.

### Early Payment by the Fund at Request of Certain Permitted Holders (paragraph 7)
- Paragraph 7 rights apply only to Permitted Holders that are either (i) Eligible Purchasers for such Notes, or (ii) transferees pursuant to paragraphs 6(a) or 6(b) meeting conditions:
  - (A) the transferee is a member of the Fund, or the central bank or fiscal agency of a member of the Fund;
  - (B) at time of transfer, the balance of payments and reserve position of the member or Relevant Member was considered sufficiently strong in the opinion of the Fund that its currency was being used in transfers under the Financial Transactions Plan.
- A qualified Permitted Holder shall obtain early payment at face value of all or a portion of principal if:
  - (i) the Permitted Holder represents that its balance of payments and reserve position (or that of the Relevant Member) justifies early payment; and
  - (ii) the Fund, having given the representation the overwhelming benefit of any doubt, determines there is a need for early payment as requested in light of the balance of payments and reserve position of the Permitted Holder or Relevant Member.
- After consultation, the Fund may make payments pursuant to paragraph 7 in SDRs or a freely usable currency as determined by the Fund, or, with agreement of the Permitted Holder, in currencies of other members included in the Fund's periodic Financial Transactions Plan for transfers.

### Media and Modalities of Payments on the Notes (paragraph 8)
- Except as otherwise provided in paragraph 7, principal payments shall be made to a Permitted Holder, as determined by the Fund, in:
  - (i) the currency borrowed whenever feasible, if the Permitted Holder is the original purchaser;
  - (ii) the currency of the Permitted Holder, if the Permitted Holder is a member of the Fund;
  - (iii) the currency of the Relevant Member, if the Permitted Holder is the central bank or fiscal agency of a member or is a prescribed SDR holder that is an official institution of a member;
  - (iv) special drawing rights (SDRs), if the Permitted Holder is covered by clauses (ii) or (iii) or is otherwise a prescribed SDR holder (provided it does not increase the member's holdings of SDRs above the limit under Article XIX, Section 4 unless the member agrees to accept SDRs above that limit);
  - (v) any freely usable currency determined by the Fund in the case of any Permitted Holder;
  - (vi) other currencies included in the Fund's periodic Financial Transactions Plan for transfers, with agreement of the Permitted Holder.
- Interest payments will normally be made in SDRs if the Permitted Holder is a member, or the central bank or fiscal agency of such member, or a prescribed SDR holder; the Fund and the Permitted Holder may agree that interest be paid in the currency of the Relevant Member. Payments of interest to other Permitted Holders will be made in a freely usable currency as determined by the Fund.
- Currency payments by the Fund will be made by crediting an account specified in advance by the Permitted Holder, or, for a Fund member Permitted Holder, by debiting the Fund's account with the designated depository of that member as determined by the Fund.
- Payments in SDRs will be made by crediting the SDR Department account of the Permitted Holder or of the Relevant Member as applicable.

### Effective Exchange Rate for Payments (paragraph 9)
- Unless otherwise agreed, all payments in currency of principal and interest will be made at the exchange rates for the relevant currencies in terms of the SDR established pursuant to Article XIX, Section 7(a) of the Fund's Articles of Agreement and the Fund's rules for the second business day of the Fund before the value date of the payment.
- If that exchange rate determination date is not a business day in the Permitted Holder's principal location, the date will be the last preceding business day of the Fund that is also a business day in the Permitted Holder's principal location.

### Changes in Method of Valuation of SDR (paragraph 10)
- If the Fund changes the method of valuing the SDR, all payments of principal and interest on the Notes made two or more business days of the Fund after the effective date of the change will be made on the basis of the new method of valuation.

### Non-Subordination of Claims (paragraph 11)
- The Fund will not take any action that would have the effect of making a Permitted Holder's claim on the Fund resulting from any Note subordinate in any way to claims on the Fund resulting from any other borrowing effected pursuant to Article VII, Section 1(i) of the Fund's Articles of Agreement.

### Settlement of Questions (paragraph 12)
- Any question arising under any Note shall be settled by mutual agreement between the relevant Permitted Holder and the Fund.

### ANNEX 2 — Form of Registered Series H Note (high-level points)
- The registered note form identifies the International Monetary Fund as obligor and promises to pay an amount equivalent to Special Drawing Rights (SDR) on the maturity date, with interest as set forth.
- The note references the General Terms and Conditions and the Applicable Note Purchase Agreement and deems holders to have agreed to those terms including maturity (and extension options), interest rate, early payment terms, and transfer restrictions.
- The note includes explicit prohibitions: it has not been registered under securities laws, and no holder shall sell, assign, dispose of or otherwise transfer the note except to entities listed as permitted (members, central banks, fiscal agencies designated for Article V, prescribed SDR holders, or other official entities with the Fund's written consent).
- Derivative transactions and transfers of participation interests in the note are expressly prohibited.
- Interest accrues daily at the SDR interest rate established pursuant to Article XX, Section 3, subject to substitution with any higher comparable borrowing rate paid by the Fund; interest paid promptly after each July 31, October 31, January 31, and April 30.
- Interest payments normally in SDRs for members/central banks/fiscal agencies/prescribed SDR holders, with possible agreement to pay in the currency of the Relevant Member or in a freely usable currency for other holders; SDR payments credited to the SDR Department account of the registered holder or Relevant Member.

*Source: pr214-signed-india-2020-borrowing-agreements PDF — General Terms and Conditions for International Monetary Fund Series H Notes.*

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_Source: https://www.imf.org/-/media/files/news/press-release/2021/pr214/pr214-signed-india-2020-borrowing-agreements.pdf_