1. Introduction - closure of Cash Ration Deposit scheme and start of the Bank of England Levy
As flagged in the Bank’s Consultation Paper dated 8 November 2023, the current Cash Ratio Deposit (CRD) scheme will be replaced by the Bank of England Levy (Levy) (subject to Parliamentary approval). When the CRD scheme ends, the Bank will return all CRD deposits it holds to CRD payers.
2. How will CRD deposits be returned by the Bank to CRD payers?
The method used by the Bank to return the CRD deposits will depend on the repayment details currently held for each relevant deposit-taker, but will be a payment by the Bank via:
- BACS, or
- CHAPS, or
- to a deposit-taker’s Reserve Account in RT.
3. What do I need to do now to prepare for the return of the CRD deposit?
In preparation and to facilitate this process, current CRD payers are requested to advise the Bank of any changes to contact or repayment details by the 14 February 2024.
Any changes to payment instructions should be signed in accordance to your signature mandate and emailed to BSGAccountsManagement@bankofengland.co.uk or alternatively sent by authenticated SWIFT message to BKENGB2L, to be sent no later than 14 February 2024.
4. When will the levy be implemented and the CRD deposit returned?
The Bank will confirm the Levy implementation date on completion of the Parliamentary process.
Any questions regarding the repayment process should be emailed to BSGAccountsManagement@bankofengland.co.uk.