The Insolvency and Bankruptcy Board of India (IBBI) on March 12, 2018 signed a Memorandum of Understanding (MoU) with the Reserve Bank of India (RBI).
The MoU was signed by Sudarshan Sen, Executive Director of the RBI and Dr. Mamta Suri, Executive Director of the IBBI during the 4th meeting of the Insolvency Law Committee (ILC) at New Delhi.
Highlights of the MoU
• Under the MoU, the RBI and the IBBI will work in partnership for the effective implementation of the Insolvency and Bankruptcy Code, 2016 and its allied rules and regulations.
• The MoU provides for sharing of information between the RBI and the IBBI, subject to the limitations imposed by the applicable laws.
• It calls for sharing of resources available with each other to the possible extent.
• Both the sides will organise periodic meetings to discuss issues such as enforcement cases, research and data analysis, information technology and data sharing.
• Both the sides will facilitate cross-training of staff for effective utilisation of collective resources and will work towards capacity building of Insolvency Professionals and Financial Creditors.
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IBBI and Insolvency and Bankruptcy Code, 2016
• The Insolvency and Bankruptcy Code, 2016 (Code) provides for reorganisation and insolvency resolution of corporate persons, partnership firms and individuals in a time bound manner.
• The Code seeks to promote entrepreneurship, availability of credit and works towards balancing the interests of all the stakeholders.
• It comprises an institutional infrastructure involving Adjudicating Authorities, the IBBI, insolvency professionals, insolvency professional agencies and information utilities.
• The IBBI supervises the Insolvency Professionals, Insolvency Professional Agencies and Information Utilities.
• The IBBI also enforces rules for corporate insolvency resolution, corporate liquidation, individual insolvency resolution and individual bankruptcy under the Code.