Behavioural change effectuated among debtors is one of the far-reaching spillover effects of the insolvency law, which is also facilitating the exit of distressed firms and thereby allocating scare economic resources for more productive use, the Economic Survey said on Tuesday.
As many as 5,893 Corporate Insolvency Resolution Processes (CIRPs) had commenced by end-September 2022, of which 67 per cent have been closed, under the Insolvency and Bankruptcy Code (IBC) that came into effect in December 2016.
Citing Reserve Bank of India (RBI) data, the Economic Survey 2022-23 said that in FY22, the total amount recovered by Scheduled Commercial Banks (SCBs) under the Code was the highest compared to other channels.
As per the data compile…
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