Reserve Bank of India (RBI) Governor Sanjay Malhotra is scheduled to appear before the Parliamentary Standing Committee on Finance on Thursday to discuss the review of the Insolvency and Bankruptcy Code (IBC) and related emerging issues, according to the panel’s agenda listed on the Lok Sabha website.
The IBC, enacted in 2016, provides a time-bound framework for resolving insolvency, maximizing asset value, promoting entrepreneurship, and balancing the interests of various stakeholders.
Malhotra’s appearance forms part of the committee’s broader efforts to assess the functioning of the IBC. Representatives from major public sector banks including State Bank of India, Bank of Baroda, Indian Bank, and Indian Overseas Bank are also scheduled to brief the committee separately on the same day.
The IBC establishes a structured and time-bound process for addressing insolvency and bankruptcy cases. It aims to streamline the resolution process by replacing multiple existing laws, thereby reducing legal complexity and improving efficiency.
The ongoing review is critical for evaluating the IBC’s effectiveness and identifying potential areas for reform. With Malhotra’s expertise, the committee is expected to gain valuable insights into the Code’s implementation and the challenges faced in practice.
As the RBI Governor has previously emphasized the need to balance financial stability with operational efficiency, his testimony is likely to shed light on the IBC’s role in sustaining a robust and resilient financial system.