IBC Haircuts Explained: Subhash Chandra's Rs 6.5 Cr Settlement, Recovery Rates at 20%

NCLT Approves Subhash Chandra's Rs 6.25 Cr Repayment Plan Against Rs 22,006 Cr Claims Under IBC

NCLT sanctioned Subhash Chandra's personal insolvency repayment plan of mere Rs 6.25 crore against admitted claims of Rs 22,006.57 crore, raising serious concerns about related party voting and inadequate claim verification. Banks have alleged that 61.78% voting share in favour came from entities linked to Chandra, potentially undermining the integrity of the IBC resolution process.

IBBI Issues 6 IBC Misuse Indicators After NCLT Stay on Subhash Chandra Rs 6.25 Cr Plan

The IBBI has issued a circular to insolvency professionals to stay vigilant against misuse of the IBC, listing six indicators of potential abuse. The directive follows a controversial NCLT order in the Subhash Chandra case where a single-member bench approved a repayment plan of only Rs 6.25 crore against admitted claims of Rs 22,006.57 crore, which was later stayed by a special bench. This highlights growing concerns over low recovery rates and potential misuse of the insolvency process by related parties.

IIP Growth Hits 7.3% in June 2026, Highest in 23 Months; Consumer Demand Weak

India's IIP grew 7.3% YoY in June 2026, the highest in 23 months. However, the growth is driven by capital and infrastructure goods due to government spending, while consumer goods (especially non-durables) show weakness, highlighting a demand-side slowdown amid high prices.

UPI@10 Years: 86% of Digital Transactions, Government Allows Merchant Fees Under PSS Act Amendment

UPI completes 10 years with 86% of India's digital transactions, but the zero-MDR model is ending. The government has amended the PSS Act to allow merchant fees, aiming to fund the next growth phase in rural areas and cross-border payments. Key challenge: balancing inclusion with sustainability.

RBI MPC Status Quo at 5.25% as CPI Inflation Rises to 4.8%, WPI at 9.92%

Retail inflation rose to 4.8% in August 2026, with food inflation at 5.95% and WPI at 9.92%. Broad-based price pressures strengthen the case for an RBI rate hike, despite the MPC keeping repo rate unchanged at 5.25% in August. This is critical for understanding monetary policy direction and the inflation targeting framework.

IIP August 2026: Manufacturing Output Rises 9%, Consumer Durables Up 11.1%

India's industrial output (IIP) grew 8% in August 2026, driven by manufacturing (9% growth) and a favourable base effect from pre-GST rate cut inventory adjustments in 2025. While consumer durables posted strong 11.1% growth, the slow 2.1% rise in non-durables signals weak rural/FMCG demand, a key concern for the upcoming festive season.

RBI Mandates Daily Bulk Deposit Rate Disclosure by 10 AM, Allows LCR-Linked Differential Pricing from Oct 2026

RBI has mandated daily disclosure of bulk deposit interest rates by 10 AM with a 10-minute grace period, ensuring uniformity across branches and customers. Simultaneously, banks can now offer differential rates on bulk deposits based on LCR run-off rates, linking pricing to liquidity risk.

Taxation Bill 2026 Allows MDR on UPI & RuPay; 23.6 Bn UPI Transactions in July

The Taxation and Other Laws (Amendment) Bill, 2026, passed in Lok Sabha, paves the way for reintroducing MDR on UPI and RuPay debit card transactions. This shifts India's digital payments policy from zero-MDR to a sustainable fee model, impacting 23.6 billion monthly UPI transactions and the largely duopolistic market of PhonePe and Google Pay.