The Reserve Bank of India (RBI) has unveiled relief measures for regions impacted by natural calamities while also signing a new Memorandum of Understanding (MoU) with the European Securities and Markets Authority (ESMA). The MoU replaces the 2017 agreement, focusing on cooperation and information-sharing related to central counterparties and cross-border clearing.
The Reserve Bank of India (RBI) has taken two significant steps to strengthen financial stability and resilience. First, it announced relief measures for areas affected by natural calamities, aimed at supporting recovery and ensuring access to financial services during crises.
In parallel, the RBI signed a new MoU with ESMA, replacing the earlier agreement from February 28, 2017. This updated framework emphasizes cooperation and exchange of information regarding central counterparties (CCPs), which are critical to clearing and settlement in global financial markets. The RBI highlighted that the MoU demonstrates the importance of cross-border collaboration in facilitating international clearing activities and maintaining systemic stability.
Key Highlights
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Relief Measures: Financial support for regions impacted by natural calamities.
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New MoU Signed: Between RBI and ESMA, replacing the 2017 agreement.
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Focus Area: Cooperation and information-sharing on central counterparties (CCPs).
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Strategic Importance: Enhances oversight and risk management in international clearing systems.
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Cross-Border Cooperation: Reinforces collaboration between Indian and European regulators.
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Global Context: Supports stability and efficiency in interconnected financial markets.
These developments underscore RBI’s dual focus on domestic resilience and international cooperation.
Sources: Business Standard, Economic Times, Moneycontrol