Government enhances IBC with key amendments for Financial sector Insolvencies

The Government has made six amendments to the Insolvency and Bankruptcy Code (IBC) to improve the insolvency resolution process and ensure better implementation. Additionally, the Insolvency and Bankruptcy Board of India (IBBI) has introduced over 100 amendments to its regulations to optimize asset value. 

In a written reply in the Rajya Sabha, Minister of State in the Ministry of Corporate Affairs, Shri Harsh Malhotra, stated that a 2019 notification, in consultation with the Reserve Bank of India (RBI), allows insolvency proceedings for Non-Banking Financial Companies (NBFCs) with assets of Rs. 500 crore or more under the IBC framework. 

These proceedings are governed by the Insolvency and Bankruptcy (Insolvency and Liquidation Proceedings of Financial Service Providers) Rules, 2019.