Insolvency and Bankruptcy Code — Predicted 2026
AI-Predicted Question Angles for UPSC 2026
Impact of Group Insolvency Framework on Corporate Resolution and Economic Stability
HighThe absence of a robust group insolvency framework has been a significant lacuna, highlighted by complex cases like IL&FS. With IBBI actively working on proposals and the government's focus on comprehensive reforms, this area is ripe for UPSC questions. It tests understanding of advanced insolvency concepts, systemic risk, and the evolution of the IBC. Questions could explore its necessity, proposed features, and potential benefits for large conglomerates and the economy. This connects to corporate governance and ease of doing business for large entities.
Critical Evaluation of Pre-packaged Insolvency Resolution Process (PPIRP) for MSMEs
Medium to HighPPIRP was introduced recently (2021) as a targeted reform for MSMEs. UPSC often tests the effectiveness and implementation challenges of new policy initiatives. Questions could focus on why PPIRP was needed, how it differs from traditional CIRP, its success rate, and its contribution to MSME revival and employment generation. This angle allows for a discussion on sector-specific reforms and the adaptability of the IBC framework to different economic segments. It also touches upon the government's broader support for MSMEs.
The Role of IBC in Addressing the Shadow Banking Crisis and Ensuring Financial Sector Resilience
MediumThe financial sector, particularly NBFCs (often referred to as 'shadow banks'), has faced significant stress. While IBC largely excludes regulated financial entities, its principles and the ongoing discussions about a dedicated FSP framework make this a relevant angle. Questions could explore the limitations of the current IBC for NBFCs, the need for a specialized resolution regime, and how such a framework would contribute to overall financial sector resilience and prevent contagion. This connects to broader financial reforms and regulatory oversight.