The shift will see negotiations between creditors and defaulting businesses being exclusively determined by bespoke provisions of the Insolvency and Bankruptcy Code.

ARCs hold specialized expertise in asset valuation, negotiation, and legal procedures, crucial for navigating the complexities of a stressed asset landscape.

NARCL, commonly known as bad bank, operates by acquiring bad loans from banks, paying 15 per cent of the amount in cash and the remainder in government-guaranteed security receipts, which banks can invoke during resolution or liquidation.