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New Delhi: Seeking to strengthen bilateral ties, India and the Maldives on Monday inked a currency swap agreement to the tune of $400 million, a move that would help the archipelago nation overcome foreign exchange reserve issues.

Prime Minister Narendra Modi and visiting Maldivian President Mohamed Muizzu also launched Rupay card in the Maldives, inaugurated the new runway at the Hanimadhoo International airport and agreed to further strengthen bilateral relations that had hit a rocky patch last year.

Muizzu, who is on a four-day state visit, held talks with Prime Minister Modi at the Hyderabad House here.

After the talks, India also handed over 700 social housing units to the Maldives built under the EXIM Bank’s buyer’s credit facilities.

"Today, we have inaugurated the redeveloped Hanimaadhoo Airport. Now, the Greater Male Connectivity Project will also be expedited. We will also support the development of a new commercial port in Thilafushi," Modi told reporters here with Muizzu by his side.

Modi said India and Maldives have decided to initiate discussion on the Free Trade Agreement to further strengthen economic ties.

The prime minister described Maldives as a "close friend" which had an important position in India's neighbourhood policy and SAGAR vision.

"India has always fulfilled the responsibilities of a neighbour. Today, we have taken up the vision of a comprehensive economic and maritime security partnership to give our mutual cooperation a strategic direction," Modi said.

Earlier, Muizzu was accorded a ceremonial welcome at the Rashtrapati Bhawan by President Droupadi Murmu. Prime Minister Modi was also present on the occasion.

Muizzu was given a tri-services guard of honour before he drove down the Rajghat to offer his respects at the memorial to Mahatma Gandhi.

The ties between India and the Maldives came under severe strain since Muizzu, known for his pro-China leanings, took charge of the top office in November.

Muizzu won the presidential election last year on the 'India out' campaign and asked New Delhi to withdraw its military personnel posted in the archipelago nation by May this year.

The bilateral ties also hit a rocky patch when Maldivian ministers were critical of Modi. However, Muizzu has since toned down his anti-India stance and even sacked ministers who were critical of the Indian prime minister.

As the Maldives was grappling with a serious economic downturn, India has decided to extend vital budgetary support to the Maldives government with the rollover of a $50 million Treasury Bill for another year.

Udupi: In a significant operation, the Malpe police have arrested seven Bangladeshi nationals who were illegally residing in India using forged Aadhaar cards. Udupi Superintendent of Police, Dr. Arun K, stated that the arrests followed after an immigration incident involving one of the group's members.

Muhammed Manik, one of the arrested individuals, was caught attempting to travel to Dubai via Mangaluru International Airport with a fake passport. Alert immigration officers at the airport detained him and handed him over to the Bajpe police, who registered a case. Following this, the Udupi police, acting on the information provided by the Bajpe police and immigration authorities, conducted an investigation that led to the arrest of the seven individuals in Hoode village, Paduthonse, Udupi.

The arrested individuals have been identified as Hakeem Ali (24), Sujon S K alias Farooq (19), Ismail S K (30), Kareem S K (20), Salam S K (22), Rajikul S K (20), and Mohammed Sojib (20), all hailing from Bangladesh.

The group entered India without any valid documentation and managed to acquire fake Aadhaar cards, which they used to stay in the country illegally. According to police sources, a person named Kajol from Agartala assisted them in obtaining the fraudulent Aadhaar cards, while a Bangladeshi named Usman facilitated their illegal entry into India under the guise of employment. Both Kajol and Usman are currently at large.

The Malpe police have registered cases under several sections, including Sections 19(2), 318(4), 336(2), 336(3), 340(2), and 190 of the BNS, related to fraud and illegal entry. Interrogations are ongoing as the police seek further details in connection with the case.