RBI strengthens ties with Dubai Financial Services Authority

Dubai, June 17: The Reserve Bank of India (RBI) signed a Memorandum of Understanding with the Dubai Financial Services Authority (DFSA) during the visit of a senior DFSA official to Mumbai this week, it has been announced.

The MoU was signed by the Chief Executive of the DFSA, Paul Koster, and RBI Executive Director G Gopalakrishna during a visit by Koster and senior DFSA executives to Mumbai, a statement released here said.

The ceremony at the central office of the RBI took place in the presence of RBI Deputy Governor K C Chakrabarty. One of the DFSA board members, Apurv Bagri, also attended the meeting.

Koster said the DFSA is honoured to be the first regulator after the China Banking Regulatory Commission to sign an MoU with the Reserve Bank of India, a respected supervisor of one of the world's largest financial systems.

"Indian banks have a significant and growing presence in the Dubai International Financial Centre (DIFC), so this enhancement of information sharing and assistance between the RBI and the DFSA is a critical step to ensuring confidence in each of our regulatory regimes," he said.

"This initiative reflects each authority's commitment to cooperation in relation to prudential oversight and inspections.

"It adopts the model for information sharing developed by the Basel Committee on Banking Supervision and follows similar arrangements the DFSA has with other significant banking supervisors such as the UK Financial Services Authority, Germany's Bundesanstalt f r Finanzdienstleistungsaufsicht, Banque de France, China Banking Regulatory Commission and the United States Federal Reserve.

"The DFSA looks forward to working with RBI for the benefit of both India and the DIFC," he added.

PTI