The Reserve Bank of India (RBI) and the Bank of England (BoE) formalized their collaboration today by signing a Memorandum of Understanding (MoU) focused on cooperation and the exchange of information concerning the Clearing Corporation of India Limited (CCIL). This MoU establishes a robust framework enabling the BoE to rely on the regulatory and supervisory activities of the RBI, ensuring the preservation of UK financial stability. Emphasizing cross-border collaboration, the agreement underscores the BoE’s commitment to recognizing and respecting the regulatory regimes of its international counterparts, particularly in facilitating global clearing activities.
The signed MoU reflects the shared interests of both authorities in bolstering cooperation within the bounds of their respective laws and regulations. Additionally, it empowers the BoE to evaluate CCIL’s application for recognition as a third country Central Counterparty (CCP), a crucial prerequisite for UK-based banks seeking to conduct transactions through CCIL.
RBI Deputy Governor T Rabi Sankar and BoE Deputy Governor for Financial Stability Sarah Breeden executed the MoU during a signing ceremony in London today. This collaborative step marks a significant stride in fostering international regulatory cooperation and promoting the seamless operation of clearing activities across borders.