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

The Reserve Bank of India (RBI) and the Bank of England (BoE) signed a Memorandum of Understanding (MoU) regarding cooperation and exchange of information in respect of Clearing Corporation of India Limited (CCIL). “The MOU establishes a framework for the BoE to have reliance on the regulatory and supervisory activities of the RBI while safeguarding the financial stability of the UK. The MoU also reflects the importance of cross-border cooperation to facilitate international clearing activities and the BOE's commitment to the governance of other regulators, RBI said in a statement. “This MoU reaffirms the interests of both authorities in enhancing cooperation in line with their respective laws and regulations. It will also enable the BOE to assess CCIL's application for recognition as a third country central counterparty (CCP), which would enable the U.K. to clear transactions through the CCIL. There is a pre-requisite for banks located,” the statement said. The MoU was signed by RBI Deputy Governor T Rabi Shankar and BOE's Deputy Governor for Financial Stability Sarah Breeden in London. ​