New Delhi, April 1 The Parliament passed amendments to the Insolvency and Bankruptcy Code (IBC) on Wednesday to facilitate faster resolutions, reduce case backlogs, and strengthen the financial ecosystem.
The Rajya Sabha passed the Insolvency and Bankruptcy Code (Amendment) Bill, 2026, through a voice vote. It had received approval from the Lok Sabha on March 30.
Responding to a brief discussion on the bill in the Rajya Sabha, Finance Minister Nirmala Sitharaman said that the IBC has contributed to the health of the Indian banking sector and has helped recover assets.
Sitharaman, who is also the Minister of Corporate Affairs, said that all 11 recommendations made by a Lok Sabha Select Committee had been accepted by the government.
In addition, one more recommendation from the Ministry of Corporate Affairs was also included.
On August 12, 2025, the government introduced the bill in the Lok Sabha to amend the Insolvency and Bankruptcy Code (IBC), proposing a range of changes, including provisions to reduce the time taken for the admission of insolvency resolution applications.
The bill was referred to a select committee of the Lok Sabha, which submitted its report in December 2025.
In FY2017-18, for every 1 company that was resolved, 5 companies went into liquidation. However, in FY2024-25, this ratio has now substantially improved and has come close to 1, she said.
Scheduled Commercial Banks (SCBs) have recovered a total of Rs 1,04,099 crore through various channels, and out of the total amount, the IBC channel alone contributed a significant Rs 54,528 crore, accounting for 52.3 per cent of the total recoveries.