assets provides a viable out of court workout mechanism. this prudential framework provides a broad principle - based regime for early recognition of stress and time - bound resolution by the lenders. however, the efficacy of this mechanism has been constrained on account of several factors, including issues with coordination among lenders. what is therefore required is a mechanism to bridge the principle - based resolution approach under out of court workout with that of the statutory umbrella of ibc so that a resolution initiated out of court can be transitioned and get implemented under ibc. recognising this requirement, the pre - pack insolvency resolution process ( ppirp / prepack ) was introduced in 2021, aimed at resolution of micro, small and medium sector enterprises ( msmes ), as an alternative to a regular cirp. the pre - pack was envisaged to be a panacea for msmes as it had all the ingredients to make a successful resolution recipe : debtor in possession, cost - effective, quicker resolution timelines and base resolution plan prepared by the msme itself. under the pre - pack arrangement, the msmes and creditors have to reach a prior agreement to resolve, before formally entering into pre - pack insolvency process. despite all the advantages, only ten applications have been admitted under ppirp so far, out of which one was withdrawn, and resolution plans has been approved in five cases. the ibbi had established an expert committee, which submitted its report in may 2023 on the creditor - led resolution approach under the insolvency and bankruptcy code, 2016. the report suggests converting the current fast - track process under the ibc into a'creditor - led'and'out - of - court'insolvency resolution process, similar to the ppirp, but with key modifications to address challenges observed in the adoption of ppirp. a suitable framework could be adopted in this regard that would be aligned with the intended objectives without undermining the essence of the ibc. ( iii ) role of committee of creditors ( coc ) the ibc assigns a central role to the committee of creditors ( coc ) in the cirp. however, this is an area where significant improvements are needed. there have been instances where the coc's performance has been found lacking in several aspects. these include disproportionate prioritization of individual creditors'interests over the collective interest of the group ; disagreements

of the code to create a thriving ecosystem which enables value preservation. in our journey to improve the resolution frameworks, let us not only look at the perceived obstacles or the roadblocks but also look back at the path we have traversed so far and the learning's along the way. we need to think of measures which can make the code an effective option for unlocking economic value of an enterprise even as we ensure strict enforcement of the provisions of the code in case of recalcitrant or unscrupulous borrowers. the last decade has been a journey of learning, improvements, and growth for all of us who are stakeholders in this process as regulators, financial institutions or as borrowers. this conclave should bring out fresh insights as to how to unlock the potential of the code which will serve to strengthen the financial system, so that it plays its role in fostering a robust growth for our nation. thank you and namaskar. 1 rbi supervisory returns 2 data referred to in this speech in respect of various aspects of cases referred under ibc has been compiled from ibbi quarterly newsletters 3 data compiled by rbi from concerned banks 6 / 6 bis - central bankers'speeches