Finance Minister Nirmala Sitharaman speaks in the Rajya Sabha during the Budget Session of Parliament on April 1, 2026. Photo: Sansad TV via ANI
Reacting to the debate on the Bill amending the Insolvency and Bankruptcy (Amendment) Bill (IBC), 2026, Union Finance Minister Nirmala Sitharaman said the bill has helped strengthen the banking system and bring value to the economy.
She said the law had also helped companies bounce back instead of being liquidated, and the new set of amendments would improve investor confidence. The Rajya Sabha passed the bill after a brief debate.
Parliament’s most important budget meeting on 1 April 2026
She said the government accepted 11 recommendations of the select committee headed by BJP MP Baijayant Panda and one amendment was tabled by the government. The Lok Sabha passed the bill on 30 March.
“In 2017-18, for every one company resolved, five companies went into liquidation. But in 2024-25, this ratio has now improved substantially and is close to one,” the minister said, adding that Scheduled Commercial Banks (SCBs) recovered a total of ₹ 1,04,099 crore, contributing a significant amount through various channels alone. ₹ 54,528 crore, representing 52.3% of total revenues.
“New business will not be burdened or disrupted by establishment and growth,” she said while explaining the provisions of the new law, adding that the amendments would ensure transparency in the process. It said that steps are being taken against the initiation of frivolous proceedings.
Published – 01 Apr 2026 22:03 IST
