The European Central Bank (ECB) and the Reserve Bank of India (RBI) have signed a revised Memorandum of Understanding (MoU) to strengthen cooperation in central banking and financial regulation, as per news reports.
The agreement was signed in Basel on the sidelines of the Bank for International Settlements meetings.
The memorandum was signed by ECB President Christine Lagarde and RBI Governor Sanjay Malhotra. It replaces an earlier agreement between the 2 institutions signed in 2015.
The revised framework includes cooperation related to central counterparties (CCPs), which are involved in clearing and settlement activities in financial markets.
One of the objectives of the agreement is to support the recognition of the Clearing Corporation of India Ltd. and other RBI-regulated CCPs by the European Securities and Markets Authority (ESMA).
The framework also sets out coordination between the RBI and ESMA in supervisory matters concerning recognised CCPs. This includes exchange of information, regulatory cooperation and monitoring of compliance conditions linked to recognition requirements.
According to the details released, ESMA may rely on the RBI’s supervisory and regulatory structure where required. However, the RBI will continue to remain responsible for oversight of CCPs operating under its jurisdiction.
Apart from supervisory coordination, the agreement also provides for regular exchange of information, policy discussions and technical cooperation between the ECB and RBI.
The 2 institutions may also conduct seminars, workshops and other joint initiatives in areas of common interest.
The memorandum updates the framework signed in 2015 to show changes in regulatory and institutional requirements over the years. The agreement is non-binding and does not override domestic laws or regulatory powers in either jurisdiction.
The RBI said the arrangement will remain effective from the date of signing and continue unless revised or replaced in the future.
The revised agreement between the ECB and RBI broadens cooperation in supervisory and regulatory areas, including oversight related to clearing corporations. It also provides a formal framework for continued information-sharing and technical engagement between the 2 central banks.
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Published on: May 11, 2026, 3:23 PM IST
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