India is shaping the banking landscape with the Indian Parliament’s lower house, the Lok Sabha, on 30th March 2026, passing the Insolvency and Bankruptcy Code (Amendment) Bill, 2025.

Indian Finance and Corporate Affairs Minister Nirmala Sitharaman said the bill was 

introduced a decade back in 2016. The IBC has undergone seven amendments. Implementation of the code has been instrumental in improving the health of the banking sector, particularly through the recovery of non-performing assets.

More than half of such stressed assets have been resolved under the framework. Companies coming out of insolvency have shown improved performance along with stronger corporate governance practices.

The amendment bill, which contains 12 proposed changes, was taken up after being examined by a select committee that submitted its report in December 2025. 

The bill seeks to streamline the admission of insolvency cases by making it mandatory for applications to be admitted within 14 days once a default is established. Prolonged litigation leads to delays in the resolution process, and the amendments introduce penalties to curb misuse of the system.