RBI, European Central Bank sign revised agreement on banking; Important to sustain global cooperation, says ECB’s Lagarde
Updated MoU provides for regular exchange of information, policy dialogue and technical cooperation.
RBI Governor Sanjay Malhotra and ECB President Christine Lagarde signed the MoU on Sunday. (RBI) The Reserve Bank of India (RBI) and the European Central Bank (ECB) on Sunday signed a Memorandum of Understanding (MoU) on cooperation in the field of central banking.
The MoU, which updates the previous MoU of 2015, provides a framework for a regular exchange of information, policy dialogue and technical cooperation between the two institutions in areas of mutual interest in the field of central banking.
The agreement was signed by Sanjay Malhotra, Governor of the RBI and Christine Lagarde, President of the European Central Bank. The signing took place on the margins of the Bank for International Settlements meetings in Basel.
“It is important that we sustain global cooperation, and I am pleased to sign this MoU together with Governor Malhotra as a sign of our continued dialogue with the Reserve Bank of India,” ECB President Christine Lagarde said.
ECB is the central bank of the euro area, which comprises European Union (EU) countries that have the euro as their currency. Its main task is to maintain price stability in the region.
Earlier in 2025, the RBI and NPCI Internation Payments Limited (NIPL) along with the European Central Bank, agreed to start the realisation phase for the UPI-TIPS link.
TARGET Instant Payment Settlement (TIPS) is the instant payment system operated by the Eurosystem.
In 2023, RBI and Bank of England signed a memorandum of understanding (MoU) on cooperation and exchange of information related to Clearing Corporation of India Ltd (CCIL). CCIL is a central counterparty which provides clearing and settlement for transactions in government securities, forex and money markets. It is regulated by the central bank.
Last year in October, the European Union’s financial markets regulator European Securities and Markets Authority (ESMA) had announced to withdraw the recognition of six Indian CCPs, including CCIL.
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