Abhishek Das & Snehashish Roy, Amity University, Kolkata
ABSTRACT
The introduction of IBC has significantly transformed the sector by boosting credit availability and financial stability through a more efficient and timely debt recovery process. Before IBC, the banking sector faced numerous challenges, including an inadequate regulatory framework and inefficient recovery mechanisms that resulted in lengthy and costly procedures. With the advent of IBC, the insolvency resolution process has become more streamlined, lender confidence has grown, and NPAs have decreased. Key reforms, such as the establishment of the National Company Law Tribunal (NCLT) and the Insolvency and Bankruptcy Board of India (IBBI), have ensured a fair and transparent system. Although challenges remain, the IBC has become a cornerstone of India's financial system, created a healthier banking environment, and contributed to economic growth through improved lending and financial stability.
Keywords: Insolvency and Bankruptcy Code, Creditors, Framework, Debts, Investors
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