IBBI to prioritise MSME dues in insolvency cases

The Insolvency and Bankruptcy Board of India (IBBI) is planning to review the rules for distributing money when a company goes bankrupt.

Right now, small and medium-sized businesses (MSMEs) get paid last, but the IBBI wants to change that so MSMEs get paid earlier, like big banks and other secured creditors.

This change is being considered because MSMEs often don't get much money back when a company fails.

However, some experts are worried that this might not help much and could hurt other creditors.

The government is still studying the idea and hasn't decided when to make any changes.