ECB & RBI Sign Updated Pact To Strengthen Regulatory Coordination

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 improve coordination in regulatory and supervisory matters related to clearing corporations.

The agreement was signed in Basel by ECB President Christine Lagarde and RBI Governor Sanjay Malhotra during the Bank for International Settlements meetings. The updated framework replaces an earlier agreement signed in 2015 and reflects changes in regulatory and institutional requirements. Under the arrangement, the RBI and ECB will expand information-sharing, policy discussions, and technical cooperation through seminars, workshops, and joint initiatives.

The pact is also expected to support recognition of the Clearing Corporation of India Ltd. and other RBI-regulated central counterparties by the European Securities and Markets Authority (ESMA).

The agreement further sets out cooperation between the RBI and ESMA on supervisory practices, compliance monitoring, and exchange of information concerning covered central counterparties. While ESMA may rely on RBI’s supervisory framework, oversight responsibility will remain with the Indian central bank.