IBC: A Game-Changer Transforming India's Insolvency Landscape, Says DFS Secretary

• Financial Services Secretary M Nagaraju stated that the IBC has transformed the insolvency landscape by promoting transparency, accountability, and efficiency in corporate dispute resolution.
• Despite achievements, challenges like resolution timelines, low creditor realizations, and NCLT capacity constraints persist.
• The seventh amendment, IBC Amendment Bill 2025, aims to address delays, low recovery rates, and introduce group insolvency, cross-border insolvency, and creditor-initiated processes.
• Reforms are expected to enhance timeliness, effectiveness, and align India's resolution regime with global best practices, fostering financial stability.
• Since its 2016 inception, IBC has seen 1,300 corporate debtor resolution plans approved, recovering Rs 4 lakh crore for creditors by September 2025, significantly reducing NPAs.

Why It Matters: IBC has revolutionized India's insolvency framework, improving financial stability despite ongoing challenges and reforms.