NEW DELHI: On Wednesday, Parliament passed amendments to the Insolvency and Bankruptcy Code (IBC), aimed at expediting resolutions, decreasing case backlog, and enhancing the financial ecosystem.
The Rajya Sabha approved the Insolvency and Bankruptcy Code (Amendment) Bill, 2026, through a voice vote, having received Lok Sabha approval on March 30.
During a brief discussion in the Rajya Sabha, Finance Minister Nirmala Sitharaman remarked that the IBC has positively impacted the health of the Indian banking sector and facilitated asset recovery.
Sitharaman, also the Minister of Corporate Affairs, stated that the government accepted all 11 recommendations proposed by a Lok Sabha Select Committee, and added one more recommendation from the Ministry of Corporate Affairs.
On August 12, 2025, the government introduced the bill in the Lok Sabha, proposing various amendments to the IBC, including measures to shorten the admission time for insolvency resolution applications.
The bill was later referred to a Lok Sabha select committee, which delivered its report in December 2025.
In FY2017-18, for every company resolved, five companies faced liquidation. However, by FY2024-25, this ratio significantly improved, nearing one, she noted.
Scheduled Commercial Banks (SCBs) have recovered a total of ₹1,04,099 crore through various means, with the IBC channel alone contributing ₹54,528 crore, representing 52.3% of total recoveries.
