The purpose of Insolvency and Bankruptcy Code (IBC) was to solve the massive problem of bad loans that was troubling the banking system of India. Many major cases were solved in a shorter duration with the IBC Code. You can read about Insolvency And Bankruptcy Code (IBC) – IBC Amendment Bill 2021 [UPSC Notes GS III] in the given link.
Earlier, solving the problem of insolvency was a long process. The IBC Code was created with the purpose of creating a one stop solution for resolving the problem of insolvency.
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