RBI and Bank of England Sign MoU for Cooperation on CCIL

• 05 Dec 2023

Recently, the Reserve Bank of India (RBI) and the Bank of England (BoE) inked a Memorandum of Understanding (MoU) on Friday to enhance cooperation and information exchange pertaining to the Clearing Corporation of India Limited (CCIL).

Key Points

• Framework for Regulatory Reliance: The MoU establishes a framework allowing the Bank of England to rely on the regulatory and supervisory activities of RBI, ensuring the safeguarding of the UK's financial stability.
• Cross-Border Cooperation: The RBI emphasized the significance of cross-border cooperation for facilitating international clearing activities.
• The MoU reflects the commitment of the Bank of England to respect the regulatory regimes of other authorities.
• Assessment for Recognition: The agreement enables the Bank of England to assess CCIL's application for recognition as a third-country Central Counterparty (CCP). This recognition is crucial for UK-based banks to conduct transactions through CCIL.
• Confirmation of Mutual Interests: The MoU reaffirms the shared interests of both authorities in enhancing cooperation in alignment with their respective laws and regulations.