Insolvency and Bankruptcy Board of India signs a MOU with the RBI

Insolvency and Bankruptcy Board of India signs a MOU with the RBI :The memorandum of Understanding was signed on 12th of March by Mr.SudarshanSen, Executive Director of the RBI and Dr. (Ms.)Mamta Suri, Executive Director of the IBBI in the august 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) were also present during this agreement. The Insolvency and Bankruptcy Code, 2016provides for reorganisation and insolvency resolution of corporate persons, partnership firms and individuals in a time bound manner for maximization of the value of assets of such persons, to promote entrepreneurship, availability of credit and balance the interests of all the stakeholders. IBBI has established an institutional infrastructure comprising of Adjudicating Authorities, the IBBI insolvency professionals, insolvency professional agencies and information utilities to implement this code. For effective implementation of the Code and its allied rules and regulations, RBI &IBBIagreed under the MoU to assist and co-operate with each other. 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.