New System to Detect Company Insolvency Risks Planned

The government is creating a new system to spot companies that might be in financial trouble early on.

This system, managed by the Ministry of Corporate Affairs (MCA), will look for red flags like unpaid taxes or problems with debt.

It's like a financial health check for businesses.

This new system aims to be better than the current one, called NeSL, by catching problems sooner.

Experts believe that integrating different data sources, like bank records and compliance data, would make the system even more effective in helping businesses avoid serious financial issues.