Govt plans debt waiver for small distressed borrowers under insolvency law

Corporate Affairs Secretary Injeti Srinivas estimates the waiver will cost Rs 10,000 crore annually.

The government plans to use the insolvency law to waive off the debts of small distressed borrowers, Corporate Affairs Secretary Injeti Srinivas has said.

The waiver will be offered using the 'fresh start' provisions of the Insolvency and Bankruptcy Code (IBC), he told news agency PTI in an interview.

The government has held discussions with the microfinance industry to select the criteria for the proposed waiver for small distressed borrowers from the economically weaker section (EWS).

He emphasised that the waiver—as part of individual insolvency—would be for the most distressed within the EWS.

"If you have once availed the fresh