What are the key challenges faced by India's IBC?

Key challenges for India's IBC include delays in resolution and liquidation timelines, leading to value deterioration and low creditor realizations, along with capacity constraints at the NCLT.

What new provisions are included in the seventh IBC amendment?

The seventh IBC amendment proposes introducing provisions for group insolvency, cross-border insolvency, and creditor-initiated insolvency processes.

How much have creditors realized through IBC so far?

As of September 2025, creditors have realized approximately Rs 4 lakh crore through approved resolution plans for 1,300 corporate debtors under IBC.

Home / Business and Economy / IBC Reforms: Group Insolvency, Cross-Border Rules Unveiled

IBC Reforms: Group Insolvency, Cross-Border Rules Unveiled

28 Jan

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Summary

New IBC amendment introduces group and cross-border insolvency.
Reforms aim to expedite resolutions and improve creditor recovery rates.
IBC has facilitated realization of Rs 4 lakh crore for creditors.

IBC Reforms: Group Insolvency, Cross-Border Rules Unveiled

The Insolvency and Bankruptcy Code (IBC) has been a pivotal reform, enhancing corporate dispute resolution and economic resilience in India. Despite its successes, challenges such as prolonged resolution timelines and capacity issues at the National Company Law Tribunal (NCLT) persist, impacting creditor recoveries.

The proposed seventh amendment, the IBC Amendment Bill 2025, seeks to tackle these critical issues. Key proposals include the introduction of group insolvency, cross-border insolvency processes, and strengthening creditor-initiated insolvency proceedings. These measures are designed to improve efficiency and align India's insolvency regime with global best practices.

Since its 2016 inception, IBC has undergone six amendments, with the Department of Financial Services actively working to expedite processes. As of September 2025, resolution plans for 1,300 corporate debtors have been approved, resulting in creditors realizing about Rs 4 lakh crore. This has contributed to a decline in gross NPA ratios for scheduled commercial banks.