Finance Minister Nirmala Sitharaman moves Bill to amend IBC, speed up resolution
GS3Economy · S&T · Environment · Security· Infrastructure (energy, ports, roads, railways)· Prelims + Mains·
Why in news
The Indian government introduced the Insolvency and Bankruptcy Code (Amendment) Bill, 2025, to streamline insolvency resolution processes and reduce delays in resolving insolvent companies.
Background
The Bill introduces a new creditor-led resolution process with a specific 150-day deadline. The amendment aims to shift the system from a punitive approach to one that encourages governance and cooperation between creditors and debtors.
Facts for Prelims
- Act / BillInsolvency and Bankruptcy Code (Amendment) Bill, 2025
- FactThe new creditor-led resolution process includes a 150-day deadline
- FactThe amendment aims to streamline insolvency resolution processes
For Mains
Q. Discuss how the proposed amendments to the Insolvency and Bankruptcy Code can enhance the ease of doing business and improve the credit ecosystem in India.
Dimensions to cover in your answer
- Creditor-Debtor Dynamics: Transitioning from punitive measures to governance-led cooperation to foster trust
- Time-bound Resolution: Addressing systemic delays in insolvency proceedings to improve capital liquidity
- Institutional Efficiency: Streamlining the resolution process to minimize the period of corporate stagnation
Keywords: Insolvency and Bankruptcy Code · Creditor-led resolution · Ease of doing business · Corporate governance · Capital liquidity
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