Insolvency Code allows raising default threshold for corporate debtors from one lakh to one crore rupees.

This section of the Insolvency and Bankruptcy Code, 2016, applies to insolvency and liquidation proceedings for corporate debtors with a default amount of at least one lakh rupees. The Central Government has the authority to increase this minimum default amount up to one crore rupees through a notification. Additionally, for the prepackaged insolvency resolution process under Chapter III-A, the government may specify a higher minimum default amount, not exceeding one crore rupees. These provisions came into effect on December 1, 2016, with amendments introduced in 2021.

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