Government

March 13, 2018

For effective implementation of Bankruptcy Code, IBBI & RBI ink MoU


bankruptcy

On March 12, the Insolvency and Bankruptcy Board of India (IBBI) inked an agreement with the Reserve Bank of India (RBI) for increased cooperation in effective implementation of the insolvency law.

The MoU comprises "sharing of information between the two parties, subject to the limitations imposed by the applicable laws" and "sharing of resources available with each other to the extent feasible and legally permissible," along with other highlighting factors too, a Finance Ministry statement said.

The Insolvency and Bankruptcy Code (IBC) provides for time -bound and market-determined insolvency resolution. The IBBI and the RBI are interested in the effective implementation of the Code and its allied rules and regulations, through a quick and effective resolution process.

"They have agreed under the MoU (Memorandum of Understanding) 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.

The two entities intend to conduct periodic meetings to discuss matters of mutual interest, including regulatory requirements that affect party’s responsibilities, enforcement cases, research and data analysis, information technology and data sharing.

Additionally, there would be cross-training of staff, capacity building of insolvency professionals and financial creditors.

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