The Insolvency and Bankruptcy Board of India (IBBI) today inked an agreement with the Reserve Bank of India (RBI) for increased cooperation in effective implementation of the insolvency law.
The pact, which provides for sharing of information as well as resources, among others, also comes at a time when the authorities are working on ways to address the huge amount of non-performing assets in the banking sector.
The Insolvency and Bankruptcy Code (IBC) provides for time -bound and market-determined insolvency resolution.
An official release said the IBBI and the RBI are interested in the effective implementation of the Code and its allied rules and regulations, through a quick and efficient 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 MoU provides for sharing of information, subject to the limitations imposed by the applicable laws as well as sharing of resources available to the extent feasible and legally permissible.
The IBBI and the RBI would also have 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.
Among others, there would be cross-training of staff, capacity building of insolvency professionals and financial creditors.
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