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    Question

    What is the minimum default amount for initiating CIRP

    for MSMEs under the IBC?
    A ₹1 lakh Correct Answer Incorrect Answer
    B ₹5 lakh Correct Answer Incorrect Answer
    C ₹10 lakh Correct Answer Incorrect Answer
    D ₹1 crore Correct Answer Incorrect Answer
    E ₹50 lakh Correct Answer Incorrect Answer

    Solution

    Under the IBC, the minimum default amount required to initiate the Corporate Insolvency Resolution Process (CIRP) is ₹1 crore. This ensures that the insolvency process is used for larger, more systemic defaults and excludes smaller defaults that may be better handled through other means.

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