India's Bankruptcy Code Shift: Financial Creditors Take Lead

In India, the Insolvency and Bankruptcy Code (IBC) is a law that helps companies that owe money to others.

For a long time, suppliers (called operational creditors) were the ones who most often started insolvency cases to get their money back.

But now, banks and other financial creditors are taking the lead.

This change happened because the government made it harder to start cases for small amounts, and banks learned how to use the IBC better.

Now, financial creditors are starting more cases, and they are also getting more of their money back compared to suppliers.

This shows that the IBC is becoming more effective for financial creditors.