Access to info utilities under bankruptcy law: IBBI proposes, RBI disposes

Central bank says information utilities can source all information only from credit bureaus; dispute could prolong litigation, hurt recovery of capital

Even as the Insolvency and Bankruptcy Board of India (IBBI) has issued standards for public information registries or information utilities to make the bankruptcy process work smoother, the Reserve Bank of India (RBI) has thrown a spanner in the works. 

Unless resolved soon, the dispute could prolong bankruptcy litigation and hurt the recovery of capital from companies that face sell-off or liquidation. 

The dispute is simple. Should any entity other than credit bureaus (Cibil, etc) have independent access to a company’s financial information as sourced from banks? The IBBI feels it is necessary, but the RBI differs. 

The bankruptcy law