For implementing Bankruptcy code, there is a need to set up an ecosystem: SBI Chief

Kolkata, July 12 (KNN) The reason why the banking sector is not rushing towards implementing the Insolvency and Bankruptcy Code is that with the law, there is also a need to set up a proper ecosystem for the same, said Arundhati Bhattacharya, Chairperson, State Bank of India (SBI).

She acknowledged that the banking sector has in one voice asked for the Bankruptcy Code as having makeshift structures forever cannot be possible.

She said this while inaugurating bank's wealth management services in the city on Tuesday.

“So, we have been asking for a bankruptcy law and that has come. Now, the reason why we have not been rushing towards this is because with the law also you need to set up the ecosystem," she said.

Bhattacharya noted that first of all, the bench of National Company Law Tribunal (NCLT) has to be created, people have to be deputed on the bench and next, one needs to create an information utility, which has not come yet.

She also cited the requirement of certified and registered resolution professionals to go with the resolution process.

"So, it has taken a little time for the law to be passed, rules to be notified and the entire infrastructure to be created. Now, the ecosystem has begun getting created...it has been created, but not fully. And that is why we have seen that slowly the cases have been going on," she said.