Syllabus: Economy
Source: SSTV
Context: The Insolvency and Bankruptcy Code (IBC) completed nine years of implementation, having resolved debt worth ₹26 lakh crore.
About Nine Years of Insolvency and Bankruptcy Code (IBC):
Origin and Purpose of IBC (2016)
- Introduced to replace inefficient debt recovery systems like SARFAESI, DRT, and SICA.
- Aims to create a time-bound, creditor-in-control resolution process rather than a debtor-dominated one.
- Establishes corporate discipline, credit culture, and financial market stability.
Major Achievements (2016–2025):
- ₹26 lakh crore in debt resolved through IBC mechanisms.
- 30,310 cases settled pre-admission (₹13.78 lakh crore defaults).
- 1,314 cases settled post-admission; 1,919…