MUMBAI: In a bid to fine-tune bankruptcy proceedings, the RBI and the Insolvency and Bankruptcy Board of India (IBBI) signed the first-of-its-kind pact on Tuesday to enhance cooperation between them and ensure better implementation of the Insolvency and Bankruptcy Code (IBC).
As per the MoU, RBI and IBBI will share data and resources with each other to the extent allowed by law and hold frequent discussions to overcome regulatory bottlenecks with respect to the implementation of the IBC.
Both regulators will undertake joint efforts for capacity building of insolvency professionals and financial creditors, and raise awareness among financial creditors to favour swift resolution of firms in distress.
“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 cooperate with each other for the effective implementation of the Code, subject to limitations imposed by the applicable laws,” IBBI said in a release.
It added that they will conduct 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 would be of interest to them in fulfilling their obligations.