DFS organises Half-Day Workshop on Insolvency and Bankruptcy (Amendment) Act, 2026

📌 Summary:

• The Department of Financial Services (DFS), Ministry of Finance, organised a half-day workshop on the Insolvency and Bankruptcy (Amendment) Act, 2026, to deliberate on its impact on the banking sector and the insolvency resolution ecosystem.

• Key data: till December 2025, more than 8,800 Corporate Insolvency Resolution Processes (CIRPs) had been admitted under the IBC; creditors realised over Rs 4.11 lakh crore through approved resolution plans; and more than 4,000 corporate debtors were rescued through resolution, settlements, withdrawals or appeals.

• DFS Secretary M. Nagaraju said the IBC established a time-bound, creditor-driven resolution framework, strengthened repayment discipline, and shifted the focus from liquidation to revival and value maximisation of stressed assets.

• The 2026 amendments introduce provisions for group insolvency, cross-border insolvency and a creditor-initiated insolvency resolution process, aimed at reducing delays in resolution.

• IBBI Chairperson Ravi Mital said the amendments would improve coordination among stakeholders and keep the insolvency framework efficient, fair and future-ready.

• Officials noted the IBC has significantly improved India's ease of doing business, while stressing the need to address delays, capacity constraints and prolonged litigation.

🎯 UPSC Relevance: GS3 — Indian Economy; banking-sector reform, resolution of stressed assets and non-performing assets, and ease of doing business.

📝 Prelims Facts:

• The Insolvency and Bankruptcy Code (IBC) was enacted in 2016; its regulator is the Insolvency and Bankruptcy Board of India (IBBI).

• CIRP stands for Corporate Insolvency Resolution Process; CoC stands for Committee of Creditors.

• The 2026 amendments add provisions for group insolvency, cross-border insolvency and creditor-initiated insolvency resolution.

• NARCL and IDRCL are entities in the stressed-asset (bad bank) resolution framework.

🔑 Key Term: Cross-border insolvency — legal provisions for handling insolvency cases where the debtor has assets or creditors located in more than one country.