Resolution of Stressed Assets and IBC – the Future Road Map | Speech by Shri Swaminathan J, Deputy Governor, Reserve Bank of India

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The document is a speech by Shri M Rajeshwar Rao, Deputy Governor, RBI, on the occasion of the Conference on Resolution of Stressed Assets and Insolvency and Bankruptcy Code - The Future Road Map. He provides an overview of the Insolvency and Bankruptcy Code (IBC) introduced in May 2016, which aimed to bring in a more structured and institutionalized approach to resolving financial distress. He highlights the five principal criteria of an efficient resolution regime and states that the IBC meets these criteria. The speech also touches upon the positive outcomes of the IBC, including increased efficiency in the resolution process, improvement in recovery rates, and marked decline in non-performing assets (NPAs) of banks. He emphasizes the need for an orderly resolution process, highlighting its importance in building confidence in investors and supporting economic growth. The speaker also underscores the importance of skilled resolution professionals and suggests ways to enhance their capacity. He concludes by highlighting the scope for improvement in the timeliness of the resolution process and expressing hope that the conference will contribute to fostering innovative solutions and paving the way for a more robust and efficient financial landscape.