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The Central Government has notified a raise in the threshold of default under Section 4 of the Insolvency and Bankruptcy Code, 2016 to Rs 1 crore for the initiation of insolvency proceedings under the Code.
The Gazette notification issued to this effect states,
The earlier threshold of default had stood at Rs 1 lakh.
The raise in threshold will by and large prevent triggering of insolvency proceedings against MSMEs.