Press Information Bureau

Government of India

Ministry of Finance

30-August-2012 16:48 IST

RBI Agreement with UK on Black Money

On 17.07.2012, the Reserve Bank of India (RBI) has entered into a Memorandum of Understanding (MoU) with Financial Service Authority (FSA) of UK. The MOU is on “Supervisory Operation and Exchange of Supervisory Information” to promote supervisory co-operation between these institutions, and to provide for formal basis for co-operation in the area of banking supervision, including for exchange of supervisory information. Such co-operation will enable these supervisory entities to perform their functions more effectively.

The MoU contains provisions for sharing of supervisory information, co-operation in respect of on-site examinations, crisis management and maintenance of confidentiality of supervisory information shared between RBI and FSA.

RBI shares any information received with regard to matters under the Financial Action Task Force with the Financial Intelligence Unit-India (FIU-IND) for taking further necessary action under the Prevention of Money Laundering Act, 2002.

This was stated by the Minister of State for Finance, Shri Namo Narain Meena in written reply to a question in the Rajya Sabha today.

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DSM/RS/bs

Exchange of supervisory information enables cross-border banking supervision and referral to FIU for PMLA enforcement. The MoU establishes a formal framework for exchange of supervisory information, cooperation on on-site examinations, crisis management and confidentiality, and provides that RBI will share FATF-related information with the Financial Intelligence Unit-India for necessary action under the Prevention of Money Laundering Act, 2002.