Rajya Sabha clears Insolvency and Bankruptcy Code Amendments

Responding to the debate on a bill to amend the Insolvency and Bankruptcy Code (Amendment) Bill (IBC), 2026, Union Finance Minister Nirmala Sitharaman said the law helps strengthen the banking system and bring value to the economy.

He said the law also helps companies turn around rather than being liquidated, and the new regulations will boost investors’ confidence. Rajya Sabha passed the bill after a brief debate.

Highlights from the April 1, 2026 Parliament Budget Session

He said that the Government has accepted the 11 recommendations of the Select Committee headed by BJP MP Baijayant Panda and one amendment has been introduced by the Government. Lok Sabha had passed the bill on March 30.

“For every one resolved in 2017-18, five companies went into liquidation. However, in 2024-25, this ratio has improved significantly and approached one,” the Minister said, adding that Scheduled Commercial Banks (SCBs) have recovered a total of 1,04,099 billion Indian rupees through various channels and out of the total amount, the IBC channel alone contributes significantly to 54,528 billion Indian rupees. It accounts for 52.3% of total recoveries.

Explaining the provisions of the new bill, he said, “New business will not be hindered or disturbed in settling and growing,” adding that the changes will ensure transparency in the process. He said steps were being taken against initiating frivolous transactions.