The Indian economy is facing a major challenge with a rise in the number of non-performing assets (NPAs) and defaulters. The accumulation of NPAs with creditors has a deleterious effect on the economy, thereby discouraging the positive flow of credit in the economy. The government and the Reserve Bank of India (RBI), time and again, keep formulating different policy-measures and regulations to curb this prevalent problem. Keeping in line with the same, in 2016, the NDA government came up with the Insolvency and Bankruptcy Code (IBC). The IBC has several peculiar features that make it stand apart from other legislations aimed at solving the menace of NPAs and defaulters before it. The objective of IBC is to boost the overall economic health of the country. The RBI was given power through the Banking Regulations (Amendment) Ordinance, 2017 to direct the banks for initiating insolvency resolution. From there on, the RBI, through its regulations and policies, began to meticulously implement the IBC. Within a month, RBI recognized twelve accounts for insolvency resolution and instructed public sector banks to frame a plan for the potential defaulters. Thereafter, in a crucial step, the RBI discarded other resolution- mechanisms to rely solely and completely on the IBC for the same. This was heralded as a much- needed step in the direction of creditor-protection. Likewise, the judiciary has also supported the IBC through its various pronouncements and decisions, giving the widest possible interpretation to the Code for its effective implementation. As a result of this, India took a massive leap by moving from 130th to 100th rank in the “Ease of Doing Business” index of the World Bank in 2017. Specifically under the head of ‘insolvency resolution’, the country took a leap of 33 points. Thus, the commendable step taken by the government and RBI on this front is showing a positive effect and will certainly show a positive result on the balance sheet of the country as well.