Daijiworld Media Network - Mumbai

Mumbai, May 10: The Reserve Bank of India (RBI) and the European Central Bank (ECB) on Sunday signed a Memorandum of Understanding (MoU) aimed at strengthening cooperation in the field of central banking and enhancing international financial stability.

The agreement was signed by RBI Governor Sanjay Malhotra and ECB President Christine Lagarde.

The MoU updates the earlier agreement signed in 2015 and establishes a framework for regular exchange of information, policy dialogue and technical cooperation between the two central banking institutions in areas of mutual interest.

Speaking on the occasion, Lagarde said sustaining global cooperation remains important and described the agreement as a sign of continued dialogue between the ECB and the RBI.

The development marks a new phase in cooperation between two of the world’s major central banking institutions.

Separately, the RBI earlier this week issued the Foreign Exchange Management (Authorised Persons) Regulations, 2026 aimed at rationalising the approval and renewal process for authorised foreign exchange entities.

According to the RBI, the new regulations were finalised after incorporating feedback received from stakeholders on the draft framework released in December 2023.

The guidelines seek to simplify the approval mechanism for entities dealing in foreign exchange and expand delivery of forex-related services through authorised agents while maintaining regulatory safeguards.

Authorised persons are entities approved by the RBI to provide services such as currency exchange, remittances and overseas payment facilities.

The new framework is expected to improve public access to foreign exchange services and streamline procedures for authorised entities.

Under the “principal-agent model”, authorised institutions such as banks or forex dealers can appoint agents to provide specific foreign exchange services to customers.

The RBI, however, clarified that adequate regulatory oversight, compliance measures and checks and balances would continue under the revised framework.