An Analytical Study Of Banking Laws In India With Special Reference To Insolvency And Asset Reconstruction
Hitesh Bisht, Law College Dehradun
Mr. Satyam Sharma, Law College Dehradun
ABSTRACT
Indian banking sector is the foundation of financial as well as economic system of the country. Nevertheless, the swift increase in the non-performing assets (NPAs), corporate failures, and financial strains have been a great burden on the banking organizations. The Indian banking laws have changed tremendously towards these fears, by providing mechanisms of insolvency resolution and asset reconstruction. The legislations on debt recovery and financial stability have changed with enactment of the Banking Regulation Act, 1949, Recovery of Debts and Bankruptcy Act, 1993, SARFAESI Act, 2002, and Insolvency and Bankruptcy Code, 2016. The aim of insolvency laws is to provide for a prompt solution to the troubled assets, and the restructuring and recovery of bad loans through asset reconstruction companies (ARCs). This is an analytical study about the interaction between banking regulations, insolvency procedures, and asset re-creation procedures in India. It points out the effectiveness, challenges, and judicial developments related to these laws whilst reiterating their role in boosting creditor confidence, enhancing financial discipline, and economic growth and stability in the banking industry.
Keywords: Banking Laws in India, Insolvency and Bankruptcy Code (IBC), Asset Reconstruction.
