The Reserve Bank of India and the Insolvency and Bankruptcy Board of India signed a memorandum of understanding to better implement the country's insolvency and bankruptcy law.
Under the agreement, the central bank and the IBBI will share information and resources, hold periodic meetings to discuss matters of mutual interest and cross-train staff to enhance understanding of each other's responsibilities. The regulators will also work together on capacity building of insolvency professionals and creditors, as well as enhancing the awareness of creditors about the importance of swift resolution process under the law.
The insolvency and bankruptcy law provides for reorganization and insolvency resolution of corporate persons, partnership firms and individuals for maximization of the value of assets of such persons, to promote entrepreneurship, availability of credit and balance the interests of all the stakeholders.
