# IBBI Study Proposes Insolvency Pros for Failed Bank Liquidation

> IBBI recommends insolvency professionals to manage failed bank liquidations under RBI and DICGC oversight.
- Title: IBBI Study Proposes Insolvency Pros for Failed Bank…
- Summary: IBBI recommends insolvency professionals to manage failed bank liquidations under RBI and DICGC oversight. The IBBI study proposes appointing IBBI-certified…
- Keywords: ibbi, insolvency professionals, failed bank liquidation, rbi, dicgc, insolvency and bankruptcy board of india, bank liquidation, banking regulations, business, money, news, Study
- Source: Financialexpress — https://financialexpress.com/business/news/ibbi-study-proposes-insolvency-professionals-for-failed-bank-liquidation/4353400
- Author: Manu Kaushik
- Published: 2026-10-04T13:13:23+00:00
- Read time: 1 min
- Topics: ibbi, insolvency professionals, failed bank liquidation, rbi, dicgc, insolvency and bankruptcy board of india, bank liquidation, banking regulations, business, money, news
## IBBI Study Recommendation
The Insolvency and Bankruptcy Board of India (IBBI) study recommends insolvency professionals handle failed bank liquidations under RBI and DICGC supervision.
## Current Bank Liquidation Process
Currently, bank failures are managed under banking laws with RBI, DICGC, and the relevant registrar playing different roles.
## Proposed Role for Insolvency Professionals
IBBI-certified insolvency professionals would manage failed banks' remaining assets while RBI and DICGC retain oversight.
## Expert Support for Change
Experts say insolvency professionals with financial sector expertise could improve loan recovery after insured deposits are paid.
## Deposit Recovery Success
More than 97% of depositors in failed banks receive money from DICGC within the insured limit of Rs 5 lakh.
## Next Steps for Liquidation
The study recommends fixed timelines for liquidation, quarterly reports, audits, and mechanisms to replace underperforming liquidators.
## Key takeaway

The IBBI study proposes appointing IBBI-certified insolvency professionals to handle failed bank liquidations with RBI and DICGC supervision, improving recovery of assets after insured deposits are paid.