The Insolvency and Bankruptcy Board of India (IBBI) has signed a Memorandum of Understanding (MoU) with Reserve Bank fo India for effective implementation of the Insolvency and Bankruptcy Code, 2016.
The MoU aims to effectively implement the code through a quick and efficient resolution process. The have agreed to assist and co-operate with each other for the effective implementation of the Code, subject to limitations imposed by the applicable laws.
The MoU was signed by Mr. Sudarshan Sen, Executive Director of the RBI and Dr. (Ms.) Mamta Suri, Executive Director of the IBBI in the presence of Mr. Injeti Srinivas, Secretary to Government of India, Ministry of Corporate Affairs; Dr. M. S. Sahoo, Chairperson, IBBI and other distinguished Members of the Insolvency Law Committee (ILC) on the side-lines of the 4th meeting of the ILC at New Delhi.
The MoU provides for: (a) sharing of information between the two parties, subject to the limitations imposed by the applicable laws; (b) sharing of resources available with each other to the extent feasible and legally permissible; (c) 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; (d) cross-training of staff in order to enhance each party’s understanding of the other’s mission for effective utilisation of collective resources; (e) capacity building of insolvency professionals and financial creditors; (f) 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.