The Insolvency and Bankruptcy Board of India (“IBBI”) has signed a memorandum of understanding (“MoU”) on 12 March 2018 with the Reserve Bank of India (“RBI”) to assist and co-operate with each other for the effective implementation of the Insolvency and Bankruptcy Code, 2016 (“Code”). The announcement has been made vide a press release issued by IBBI (available here).
The MoU between IBBI and RBI (“Parties”) provides for the following:
- sharing of information between the Parties, subject to the limitations imposed by the applicable laws;
- sharing of resources available with each other to the extent feasible and legally permissible;
- 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;
- cross-training of staff in order to enhance each Party’s understanding of the other’s mission for effective utilisation of collective resources;
- capacity building of insolvency professionals and financial creditors; and
- joint efforts towards enhancing the level of awareness among financial creditors about the importance and necessity of swift insolvency resolution process of various types of borrowers in distress under the provisions of the Code, etc.
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