IBBI – Reserve Bank signs MoU, cooperation in efficient resolution mechanism on the agenda

New Delhi, Mar 13 (KNN) In a bid to make the Insolvency mechanism more comprehensive, the Insolvency and Bankruptcy Board of India (IBBI) signed a Memorandum of Understanding (MoU) today with the Reserve Bank of India (RBI).

Ministry of Corporate Affairs informed of the latest development in an official release.

“Both the RBI and the IBBI are interested in the effective implementation of the Code and its allied rules and regulations, through a quick and efficient resolution process. Therefore, they have agreed under the MoU to assist and co-operate with each other for the effective implementation of the Code, subject to limitations imposed by the applicable laws”, the release said.

Under the MoU, the two institutions will cooperate in sharing of information, sharing of resources available with each other to the extent feasible and legally permissible.

Also RBI and IBBI are to hold periodic meetings to discuss matters of mutual interest, including regulatory requirements that impact each party's responsibilities, enforcement cases, research and data analysis, information technology and data sharing, or any other matter that the parties believe would be of interest to each other in fulfilling their respective statutory obligations.

The officials will benefit from cross-training and capacity building of insolvency professionals and financial creditors.

The Central bank and the Insolvency authority has also expressed the need for appropriate awareness regarding the code, for which the two parties will coordinate. (With PIB Inputs) (KNN/DA)