RBI strengthens ties with DFSA

Posted By: Religare
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RBI  strengthens ties with DFSA
The Indian banking regulator, the RBI has signed a memorandum of understanding or an MOU between its counterpart the Dubai Financial Services Authority or DFSA in a bid to improve its relationship with it.

The Chief Executive of the DFSA, Paul Koster and the RBI Executive Director G Gopalakrishna signed the pact when Mr. Koster visited Mumbai earlier this week. He was accompanied by other senior DFSA officials. RBI's deputy Governor KC Chakrabarty was also present on the occasion.

The DFSA is the first regulator after the China Banking Regulatory Commission to sign an MOU with the RBI .RBI has earned the respect of all the banking regulators in the world in the way it handled the financial crises of 2008-09. DFSA is looking forward to its partnership with the RBI which would enhance co-operation, information sharing and improve banking supervision in both the countries.

A large number of Indian banks are present in the Dubai International Financial Centre or DIFC .The MOU will help the exchange of ideas and information sharing between the banks. The Basel Committee on Banking Supervision recommends information sharing between the banking regulators across different countries as a necessary step in improving insight and detecting and preventing fraudulent and unsecure transactions.

DFSA has also signed similar MOU's with other leading banking supervisors such as the UK Financial Services Authority , Germany's Bundesanstalt fur Finanzdienstleistungsaufsicht, Banque de France, China Banking Regulatory Commission and the United States Federal Reserve.

Read more about: rbi, economy, central bank
Story first published: Monday, June 20, 2011, 9:30 [IST]
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