RBI–ESMA Memorandum of Understanding:
The Reserve Bank of India (RBI) signed a Memorandum of Understanding (MoU) with the European Securities and Markets Authority (ESMA) during the visit of the President of the European Council and the President of the European Commission to India.The MoU will enable formal recognition of the Clearing Corporation of India Ltd. (CCIL) and other RBI-regulated Central Counterparties (CCPs) by ESMA, allowing them to operate smoothly with European market participants.It will make it easier for European banks and investors to access India’s financial markets by lowering regulatory and operational hurdles.Both authorities will consult, cooperate, and exchange information to monitor compliance of the covered CCPs with ESMA’s recognition conditions.ESMA will rely on RBI’s regulatory and supervisory framework, while RBI will remain responsible for the resilience of CCPs in India.The MoU is a non-binding statement of intent, creating no legal obligations, conferring no enforceable rights, and not superseding domestic laws.
