The Reserve Bank of India, today, signed and exchanged Letter on “Co-operation in the area of Banking Supervision” with Financial Services Agency, Japan. The Reserve Bank has been signing the Memorandum of Understanding (MoU) with supervisors of other countries to promote greater co-operation and sharing of supervisory information between the two supervisors. Till date, RBI has signed nineteen such MoUs. Exchange of Letters (EoL) is also a popular practice among the global supervisors for setting up a formal platform/gateway for exchange of supervisory information and enhancing supervisory cooperation.   This is the first EoL being entered into by RBI with an overseas supervisor.

The EoL was signed by Mr Masamichi Kono, Vice Commissioner for International Affairs, FSA and by   Dr K C Chakrabarty, Deputy Governor, on behalf of RBI. The function was held at FSA Head Quarters in Tokyo, Japan. Shri Arvind Singh, Minister (Economic), Indian Embassy in Japan, graced the occasion.

Samruddhi Chaudhary

Assistant Manager

Cooperation in banking supervision enables formal exchange of supervisory information through an Exchange of Letters, strengthening cross-border oversight. An Exchange of Letters establishes a formal platform for cooperation in banking supervision between the Reserve Bank of India and the Financial Services Agency, Japan, enabling bilateral exchange of supervisory information and enhanced supervisory coordination; this EoL is the first such instrument by the Reserve Bank with an overseas supervisor and complements its existing practice of concluding memoranda of understanding with foreign supervisors.