Gupta, M.S. and Singh, J.B.
Insolvency and bankruptcy code (IBC) in India: Impact on recovery of NPSs by banks - Bihar Journal of Public Administration - 17(2), Jul-Dec, 2020: p.605-613
The Insolvency and Bankruptcy Code (May 2016) is a game changer in the resolution of non-performing assets (NPAs)of banks in India because it provides a framework for time-bound insolvency resolution with the objective of promoting entrepreneurship and availability of credit while balancing the interests of all stakeholders. There is a paradigm shift under IBC in which creditors take control of the assets of the defaulting debtors, in contrast to the earlier system in which assets remained in the possession of debtors till resolution or liquidation. The experience so far has been encouraging with IBC regime. India’s insolvency resolution score and recovery rate also improved in the World Bank’s Ease of Doing Business Index, after the introduction of IBC. Strengthening the infrastructure of insolvency resolution should help reduce the overall time currently being taken for resolution under the IBC. JEL Classification: G00, G33. – Reproduced
Bankruptcy, Insolvency, Liquidation.
Insolvency and bankruptcy code (IBC) in India: Impact on recovery of NPSs by banks - Bihar Journal of Public Administration - 17(2), Jul-Dec, 2020: p.605-613
The Insolvency and Bankruptcy Code (May 2016) is a game changer in the resolution of non-performing assets (NPAs)of banks in India because it provides a framework for time-bound insolvency resolution with the objective of promoting entrepreneurship and availability of credit while balancing the interests of all stakeholders. There is a paradigm shift under IBC in which creditors take control of the assets of the defaulting debtors, in contrast to the earlier system in which assets remained in the possession of debtors till resolution or liquidation. The experience so far has been encouraging with IBC regime. India’s insolvency resolution score and recovery rate also improved in the World Bank’s Ease of Doing Business Index, after the introduction of IBC. Strengthening the infrastructure of insolvency resolution should help reduce the overall time currently being taken for resolution under the IBC. JEL Classification: G00, G33. – Reproduced
Bankruptcy, Insolvency, Liquidation.