On 9 December 2014, RBI entered into an agreement (statement of cooperation) with financial regulators in the US for cooperation and sharing of supervisory information. The financial regulators from US in this SoC are Federal Deposit Insurance Corporation, Office of the Comptroller of Currency, and the Board of Governors of the Federal Reserve System. This SoC makes it easier for RBI to coordinate with these organizations in carrying out supervision of financial institutions.
The background for signing was prepared during US visit of PM Modi in September last
By signing this agreement with financial regulators of different countries, RBI can easily share supervisory information with financial regulators of other countries. This agreement is a result of discussion that Prime Minister Modi had with financial authorities in the US. India and the US have moved forward on this front rapidly in the last few months. Both sides had declared their intent to increase cooperation in sharing of information as it would help in improving supervision across the border for both countries. It is in this connection that this SoC has been signed by RBI with the American financial regulators.
In a statement issued on 2 January 2015, RBI says “The Reserve Bank, on December 9, 2014, concluded a Statement of Co-operation (SoC) on Supervisory Cooperation and Exchange of Supervisory Information with the Board of Governors of the Federal Reserve System (FRB), Office of the Comptroller of Currency (OCC) and Federal Deposit Insurance Corporation (FDIC),”
RBI has been signing such agreements with financial regulators of other countries
Including this, RBI has so far signed 22 MoUs, one SoC, and one Statement of Cooperation with financial regulators in other countries of the world. These agreements allow RBI to coordinate with the financial authorities in a much better manner and sharing of supervisory information seamlessly.
About Sanjay Tandon
Sanjay Tandon is a graduate engineer from IIT Varanasi. He has been writing as a freelancer for many years. He loves to write on various niches. He is passionate about politics and economy and spends his free time watching news channels. He is also an expert on relationships.