New Delhi, May 10
In a significant move to bolster international financial stability and foster cross-border regulatory synergy, the Reserve Bank of India and the European Central Bank have officially signed a Memorandum of Understanding on cooperation.
The MoU on cooperation in the field of central banking was signed by Sanjay Malhotra, Governor of the Reserve Bank of India (RBI) and Christine Lagarde, President of the European Central Bank (ECB), on Sunday.
The agreement marks a new chapter in the relationship between two of the world's most influential central banking institutions.
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 release noted.
"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," said ECB President Christine Lagarde.
Separately on Wednesday, the Reserve Bank of India said that it has issued the Foreign Exchange Management (Authorised Persons) Regulations, 2026, which aim to rationalise the authorisation and renewal framework for authorised persons and extend the principal-agent model for the delivery of foreign exchange facility while maintaining appropriate checks and balances.
An RBI release said that the regulations have been issued after examining and suitably including feedback received from the stakeholders on the draft framework published on the Bank's website on December 26, 2023.
The guidelines seek to simplify the approval framework for entities dealing in foreign exchange and expand the delivery of forex services through agents while maintaining regulatory safeguards.
Authorised persons are entities approved by the RBI to provide foreign exchange-related services such as currency exchange, remittances and overseas payment facilities.
The move is expected to simplify the approval and renewal process for such entities and improve access to foreign exchange services through authorised agents.
The "principal-agent model" allows authorised entities, such as banks or forex dealers, to appoint agents for providing certain foreign exchange services to customers.
The RBI, however, said the framework will continue to maintain "appropriate checks and balances", indicating that regulatory oversight and compliance requirements will remain in place.
- ANI
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