European Central Bank (ECB):
The Reserve Bank of India (RBI) and the European Central Bank (ECB) signed a Memorandum of Understanding (MoU) to enhance cooperation in central banking.
- European Central Bank (ECB) is the prime monetary authority of the European Union and the central component of the Eurosystem and the European System of Central Banks (ESCB).
- It is one of the world’s most influential central banks, overseeing a combined balance sheet of approximately €7 trillion.
- Founded in: 1st June 1998, by the under the Maastricht Treaty framework.
- The euro was launched on 1 January 1999.
- Gained the status of an official EU institution on December 1, 2009, via the Treaty of Lisbon.
- Headquarters: Frankfurt, Germany.
- Aim:
- The primary objective of the ECB is to guarantee and maintain price stability within the Eurozone. It manages the Euro—the single currency of the EU—and works to keep consumer price inflation low and stable to support economic growth and job creation.
- The ECB governs the Eurozone, which has expanded from its original 11 members to 21 countries as of 2026.
- Croatia joined in January 2023, and Bulgaria became the latest member in January 2026.
- Its capital stock (€11 billion) is owned by the central banks of all 27 EU member states as shareholders, with shares determined by each nation’s population and GDP.
