Loading…
RBI and ECB signed an updated MoU on central banking cooperation in May 2026
Signed by RBI Governor Sanjay Malhotra and ECB President Christine Lagarde
Signed on the sidelines of BIS meetings in Basel, Switzerland
Updates the previous agreement of 2015
Focus: information exchange, policy dialogue, and technical cooperation
India's central bank and monetary authority
Central bank of the 20-member Eurozone
Bank for central banks; promotes monetary and financial cooperation
Original RBI-ECB MoU signed
Updated MoU signed at BIS meetings, Basel
MoUs between central banks formalize information sharing on monetary policy, financial stability, payment systems, and supervision. They help in managing cross-border financial risks and coordinating responses to global shocks.
Simple Analogy: Think of it as a 'hotline' between two of the world's biggest financial regulators—so they can share notes and act in sync during crises.
Banking Awareness > RBI & Central Banks
GS Paper 3 > Indian Economy > Banking
Current Affairs > Economy
What was the purpose of Inter-Creditor Agreement signed by Indian banks and financial institutions recently?
Answer: To aim at faster resolution of stressed assets of 50 crore or more which are under consortium lending
What is the importance of the term "Interest Coverage Ratio" of a firm in India? 1. It helps in understanding the present risk of a firm that a bank is going to give loan to. 2. It helps in evaluating the emerging risk of a firm that a bank is going to give loan to. 3. The higher a borrowing firm's level of Interest Coverage Ratio, the worse is its ability to service its debt. Select the correct answer using the code given below:
Answer: 1 and 2 only
Bank for International Settlements, est. 1930, Basel
European Central Bank, est. 1998, Frankfurt, Germany; regulates Euro