What Is The IBC Full Form In Banking?

The full form of IBC is the Insolvency and Bankruptcy Code. In India, IBC helps people and companies when they can’t pay what they owe. Its goal is to solve money problems fairly and fast. If someone can’t pay, the law helps them reorganize their debts or sell things to pay back the people they owe money to.

Some more details about IBC:

Under the IBC, there’s a set time to fix money problems. When someone can’t pay the people, they owe money to take control of their stuff and work to solve the problem. The person who owes money and the people they owe can try to get their money back.

Companies must finish fixing their money problems within 180 days under the IBC. If they’re small, like startups with low sales, they get 90 days, possibly more than 45 days. If they can’t fix things, the company is closed down.

During the resolution process, a professional takes control of the entity’s assets and manages them to get the best value. The IBC cares about everyone involved, like creditors, debtors, and employees, so the process is fair and clear. Overall, the IBC lets people appeal if they don’t like decisions made during the resolution. It helps viable entities get back on track and closes down ones that can’t be saved quickly. This gives everyone a chance to start fresh.