How IBC has Improved Business For Entrepreneurs Finance Minister announced about the changes that have been made in the Insolvency and Bankruptcy code (IBC) to bring ease in business for the enterprises and businesses across the country
By Vinayak Sharma •
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Finance Minister Nirmala Sitharaman made an official statement on Wednesday about the transformed norms and changes in the policy structure of IBC to bring ease of business for the businessmen dealing in several trade spheres. In an announcement, FM said that IBC has improved business climate by creating an easy environment for the entrepreneurs to exit in case of difficulties.
"IBC has brought in real time changes for the business convenience in the country. We have reached a stage where we can stand up for international standards in ease of doing business", she said.
FM added "This is the way which is also going to help us in creating easy paths for people wanting to do business. We are heading to avoid business fear in the people as few entrepreneurs do not know about the way out in difficult situations." she said.
IBC professionals
IBC has created a work sphere in a way that has experts related to the business sectors. Experts can advice and put in ideas for the business owners and entrepreneurs to fortify their venture. According to the Finance Minister, these advisors hold expertise in their sectors related to business.
Sitharaman said IBC has created a set of professionals who help, advice and also show the path through which businesses can exit if situations are adverse.
Model Shift in Debtor-Creditor
According to the MoS for Finance and Corporate affairs, Anurag Thakur, to make the dealing process better between debtor and creditor, some policies have been modified which has brought ease to the financial business trade.
"IBC has achieved a change in perspective in creditor-debitor relationship. Delay in resolution has raised worries over the goals procedure under IBC" he said.
Bringing up the 12 cases referred by RBI for resolution under IBC, Thakur stated that around 7 cases have been resolved whereas 5 are pending for more than two years. He mentioned to emphasize on the reasons of uncertain cases and work on it.
RBI ordered banks to file proceedings against 12 giant accounts in the unsettled list of RBI which evaluated 25 per cent of NPA in 2017 held it in 2017.
