RBI wants IBC to replace may with shall to speed up bankruptcy approvals

Published on 24 April 2026

A single word change could decide who gets admitted

India’s bankruptcy process under the IBC is plagued by long delays, with cases lingering for years. RBI now proposes tightening timelines by changing key wording: moving from “may” to “shall” for whether authorities admit insolvency applications. An amendment bill incorporating the regulator’s suggestions is expected to be tabled in the upcoming budget session.

IBC delays have left insolvency cases stuck for years
RBI targets wording in admission decisions using may to shall
The change is aimed at making outcomes more time bound
An amendment bill reflecting RBI input will be tabled

#ibc #bankruptcy #insolvency #india #rbi

Read the full story at The Economic Times

This summarization was done by Beige for a story published on The Economic Times

RBI wants IBC to replace may with shall to speed up bankruptcy approvals

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