Govt asks PSB to monitor cases where insolvency proceedings can initiated against individuals guarantors

The Finance Ministry has asked public sector banks to monitor cases where insolvency proceedings could be initiated against individuals who are guarantors of corporate debtors that have defaulted on loans.   The Insolvency and Bankruptcy Code (IBC) provides for a time-bound and market-linked resolution of stressed assets.   The Code also provides for initiation of insolvency proceedings against personal guarantors of corporate debtors, even though the provision has not been used much by lenders ...