RBI, Bank Of England Signs MoU On Exchange Of Information

The Reserve Bank of India (RBI) and the Bank of England (BoE) have signed a Memorandum of Understanding (MoU) concerning cooperation and exchange of information concerning clearing corporation of India(CCIL).

As per an RBI release, the MoU establishes a framework for the BoE to place reliance on the RBI's regulatory and supervisory activities while safeguarding UK financial stability.

The Clearing Corporation of India was set up in April 2001, to provide guaranteed clearing and settlement functions for transactions in money, government securities (G-Secs), foreign exchange and derivative markets.

"The MoU also demonstrates the importance of cross-border cooperation to facilitate international clearing activities and the BoE's commitment to deference to other regulators' regimes," the RBI release said.

"It will also enable the BoE to assess the application of CCIL for recognition as a third country Central Counterparty (CCP) which is a pre-requisite for UK-based banks to clear transactions through CCIL."

The MoU was signed by RBI Deputy Governor T Rabi Sankar and BoE Deputy Governor for Financial Stability Sarah Breeden in London.