It has proposed to bring together various stakeholders, processes and technology systems operating under the Insolvency and Bankruptcy Code (IBC) by integrating multiple business processes and digital services into a common technology framework.
The aim is to provide seamless, secure and transparent user experience across the insolvency lifecycle, it said. The ministry has sought stakeholder comments on the proposal by August 3.
The platform, the ministry said in the proposal, will support end-to-end digital workflows, facilitate information exchange among authorised stakeholders, and cut reliance on manual processes.
It said while the IBC has bolstered India’s insolvency framework through a structured and time-bound process, the ecosystem “continues to operate on multiple standalone systems requiring manual coordination and exchange of information among stakeholders”.
So, the proposed platform is envisaged to “further strengthen and enhance the effectiveness of the IBC by improving efficiency, transparency, accountability, ease of doing business and improving the overall insolvency resolution process”, it added.
The ministry said, since the success of any such platform hinges on the participation of key stakeholders, it’s seeking suggestions from professionals, institutions, industry, and academia to help shape the design and functionality of the platform.Envisaged benefits
The ministry said the proposed platform will address the challenges of the extant fragmented IT systems in the IBC Ecosystem by integrating platforms across institutions operating within their individual mandates.
It will replace reliance on traditional communication channels with structured interlinking and collaboration. It will leverage information technology to streamline and boost efficiency across all IBC processes. So, it will minimize delays, improve transparency, raise resolution applicant participation, facilitate effective decision-making, and maximize value in insolvency proceedings, the ministry said in the proposal, while seeking stakeholder inputs.
“By interconnecting processes currently operating in silos across pillars, it reduces manual intervention during process transitions and supports real-time information flow,” it added.