Economics • Indian EconomyEasy
What does the 'Insolvency and Bankruptcy Code (IBC), 2016' seek to establish in India?
A. A time-bound process for resolving insolvency and bankruptcy cases for corporate entities and individuals.✓ Correct Answer
B. A judicial mechanism for criminal prosecution of willful bank loan defaulters.
C. A regulatory board to oversee foreign direct investments in real estate.
D. A fund to bail out distressed public sector banks using taxpayer money.
💡 Solution & Explanation
The Insolvency and Bankruptcy Code of 2016 provides a unified, time-bound legal framework for resolving corporate, partnership, and individual financial distress in India. It replaced a fragmented legacy framework to improve the ease of doing business and accelerate debt recovery.
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