RBI signs MOU with Bank of England for exchange of information in relation to CCIL

The Reserve Bank of India (RBI) and the Bank of England (BoE) signed a Memorandum of Understanding (MoU) on December 02, 2023, regarding cooperation and information exchange in regards to the Clearing Corporation of India Limited (CCIL).

The MoU provides a framework for the Bank of England (BoE) to rely on the RBI’s regulatory and supervisory efforts while protecting UK financial stability. The MoU also highlights the importance of cross-border collaboration in facilitating international clearing activities, as well as the Bank of England’s intention to defer to the regimes of other regulators.

This Memorandum of Understanding (MoU) confirms both authorities’ interests in expanding cooperation by their respective laws and regulations. It will also allow the Bank of England to evaluate CCIL’s application for recognition as a third-country Central Counterparty (CCP), which is required for UK-based banks to clear transactions through CCIL.

The MoU was signed on December 1, 2023, in London by the RBI Deputy Governor T Rabi Sankar and the Bank of England Deputy Governor for Financial Stability Sarah Breeden.