Sansad TV

Perspective: Insolvency and Bankruptcy Code Bill, 2026 | 02 April, 2026

Sansad Tv

This week, Parliament passed amendments to the Insolvency and Bankruptcy Code (Amendment) Bill, 2026 to provide faster resolutions, reduce case backlog and strengthen the financial ecosystem. The Rajya Sabha passed the Bill on Wednesday, 1st April, with a voice vote. It had received the approval of the Lok Sabha on March 30th. Replying to the discussion on the Bill, Finance Minister Nirmala Sitharamn underlined that the IBC is designed to preserve enterprise value and resolve financial stress in a market-driven manner. She said the objective is to revive firms rather than liquidate them. The amendments brought to the IBC Code 2016 will further strengthen the existing insolvency framework. She said these changes aim to address practical challenges, incorporate evolving global best practices, and reflect the experience gained since the law’s implementation in 2016. The Finance Minister further stressed that the Insolvency and Bankruptcy Code has been a key factor in improving the health of India’s banking sector, particularly in resolving stressed assets. Citing official data, she informed that IBC has facilitated the resolution of one thousand 376 companies, enabling creditors to recover 4.11 lakh crore rupees. She said the financial creditors have recovered more than 64% of their claims under the process. She informed the House that the commercial banks have recovered a total of over one lakh four thousand crore rupees from NPAs, and out of this, the IBC alone contributed more than 54 thousand 528 crore rupees. In Perspective today, we look at the key amendments brought about, why they were necessitated and most importantly, how they further strengthen the insolvency framework.

Guests:- 1. Dr. Bhagwat Karad, MP, Rajya Sabha, Maharashtra, BJP