The Parliament has passed the Insolvency and Bankruptcy Code (Amendment) Bill, 2026, with the Rajya Sabha approving it today with a voice vote. Minister of State for Corporate Affairs Harsh Malhotra moved the Bill, which aims to further amend the Insolvency and Bankruptcy Code 2016. The Bill also seeks to address procedural delays and interpretational issues among companies and individuals.
Replying to the discussion on the Bill, Finance Minister Nirmala Sitharaman said that the IBC framework said that the Insolvency and Bankruptcy Code was never intended to function merely as a debt recovery mechanism but as a framework to rescue viable businesses, resolve financial stress and preserve enterprise value. She said the IBC Amendment Bill has a total of 12 amendments, including 11 recommended by the Select Committee and one introduced by the government. Speaking about the Bill, the Minister said that the Insolvency and Bankruptcy Code has been a key factor in improving the health of India’s banking sector, particularly in resolving stressed assets. She emphasized that the law was never intended to function merely as a debt recovery mechanism.
Responding to concerns raised by several members over low recovery rates under the IBC, the Finance Minister said such criticism misunderstands the very purpose of the law. Citing official data, Ms Sitharaman said the IBC has facilitated the resolution of one thousand 376 companies, enabling creditors to recover 4.11 lakh crore rupees. She added that financial creditors have recovered more than 64% of their claims under the process. She informed the House that the commercial banks have recovered a total of over one lakh four thousand crore rupees from NPAs, and out of this, the IBC alone contributed more than 54 thousand 528 crore rupees.
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