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Key Facts: IIBF Resolution of Stressed Assets Exam

100 MCQs / 100 marks

Official IIBF exam structure

IIBF Rules & Syllabus 2026

50/100

Minimum passing score

IIBF Rules & Syllabus 2026

2 hours

Exam duration; no negative marking

IIBF Rules & Syllabus 2026

₹1,100 / ₹1,600

IIBF Member / Non-member fee per attempt

IIBF Rules & Syllabus 2026

330 days

Maximum time allowed for completion of CIRP including litigation

IBC Amendment 2019

₹1 crore

Minimum amount of default to initiate corporate insolvency process

IBC Section 4 Notification

IIBF Stressed Assets certificate: 100 MCQs for 100 marks in 2 hours, English, remote-proctored, no negative marking; pass at 50/100. Fees ₹1,100 (members) / ₹1,600 (non-members) per attempt + taxes. Eligibility: 12th pass/equivalent or IIBF BC/BF.

Sample IIBF Resolution of Stressed Assets Practice Questions

Try these sample questions to review concepts for the IIBF Resolution of Stressed Assets exam. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1Which of the following legislations was consolidated by the Insolvency and Bankruptcy Code (IBC) 2016 regarding corporate insolvency in India?
A.Sick Industrial Companies (Special Provisions) Act (SICA), 1985
B.Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002
C.Recovery of Debts and Bankruptcy Act (RDBA), 1993
D.Banking Regulation Act, 1949
Explanation: The IBC 2016 consolidated and repealed several legislations, including the Sick Industrial Companies (Special Provisions) Act (SICA), 1985. The SARFAESI Act, 2002 and RDBA, 1993 were not repealed; rather, they were amended to harmonize with the IBC.
2What is the minimum default threshold required to initiate the Corporate Insolvency Resolution Process (CIRP) under Section 4 of the IBC 2016?
A.₹1 Lakh
B.₹1 Crore
C.₹10 Lakhs
D.₹10 Crores
Explanation: In March 2020, the Central Government, exercising powers under Section 4 of the IBC, increased the minimum amount of default required to initiate CIRP from ₹1 Lakh to ₹1 Crore to prevent the insolvency of MSMEs during the pandemic.
3Under the IBC 2016, how is a 'Corporate Debtor' defined?
A.A financial service provider who has defaulted on payments to its depositors
B.An individual or partnership firm that has defaulted on a business loan
C.A corporate person who owes a debt to any person
D.Any entity that is currently in a state of voluntary liquidation
Explanation: Section 3(8) of the IBC 2016 defines a 'Corporate Debtor' as a corporate person who owes a debt to any person. A corporate person includes companies and limited liability partnerships (LLPs) but excludes financial service providers unless specifically notified.
4Which of the following is classified as an 'Operational Debt' under Section 5(21) of the IBC 2016?
A.A loan facility extended by a consortium of commercial banks
B.Interest-bearing debentures issued to public investors
C.A claim in respect of the provision of goods or services, including employment
D.A financial lease agreement which is treated as a financial debt
Explanation: Operational Debt is defined under Section 5(21) as a claim in respect of the provision of goods or services, including employment, or a debt in respect of the payment of dues arising under any law for the time being in force and payable to the Central Government, any State Government, or any local authority.
5Who is considered a 'Financial Creditor' under the Insolvency and Bankruptcy Code, 2016?
A.Only registered commercial banks and public financial institutions
B.Any person to whom a financial debt is owed, including any assignee or transferee of such debt
C.Creditors who supply raw materials and services to the corporate debtor on credit
D.Government authorities demanding unpaid corporate income taxes
Explanation: Under Section 5(7) of the IBC, a financial creditor is any person to whom a financial debt is owed, and includes any person to whom such debt has been legally assigned or transferred. This encompasses both secured and unsecured financial lenders.
6What is the primary objective of the IBC 2016 as stated in its Preamble?
A.To recover loans on behalf of financial institutions through asset seizure
B.To penalize directors and promoters of companies that run into financial distress
C.To nationalize sick industrial units and protect state interests
D.To reorganize and resolve insolvency of corporate persons, partnership firms, and individuals in a time-bound manner for maximization of value of assets
Explanation: The Preamble of the IBC states that its objective is to consolidate and amend laws relating to reorganization and insolvency resolution of corporate persons, partnership firms, and individuals in a time-bound manner for maximization of value of assets, to promote entrepreneurship, availability of credit, and balance the interests of all stakeholders.
7Which of the following bodies is designated as the Adjudicating Authority for corporate insolvency resolution and liquidation under Part II of the IBC 2016?
A.Debt Recovery Tribunal (DRT)
B.National Company Law Tribunal (NCLT)
C.Securities and Exchange Board of India (SEBI)
D.High Court of the respective state
Explanation: Under Section 60(1) of the IBC, the Adjudicating Authority in relation to insolvency resolution and liquidation for corporate persons (companies and LLPs) is the National Company Law Tribunal (NCLT) having territorial jurisdiction over the place where the registered office of the corporate debtor is located.
8Under the IBC 2016, who is the Adjudicating Authority for the insolvency resolution and bankruptcy of individuals and partnership firms?
A.Civil Courts
B.National Company Law Tribunal (NCLT)
C.Insolvency and Bankruptcy Board of India (IBBI)
D.Debt Recovery Tribunal (DRT)
Explanation: Under Part III of the IBC 2016, the Debt Recovery Tribunal (DRT) is designated as the Adjudicating Authority for individuals and partnership firms, with the Debt Recovery Appellate Tribunal (DRAT) acting as the appellate authority.
9If an Operational Creditor serves a Section 8 demand notice, within how many days must the Corporate Debtor notify the creditor of any pre-existing dispute?
A.7 days
B.14 days
C.10 days
D.30 days
Explanation: Under Section 8(2) of the IBC, the Corporate Debtor must, within 10 days of the receipt of the demand notice or copy of invoice, bring to the notice of the operational creditor the existence of a dispute or the payment of the unpaid operational debt.
10Which of the following is NOT a necessary component of 'Financial Debt' as defined under Section 5(8) of the IBC?
A.Any amount raised from the public through issue of bonds or debentures
B.A claim arising from the non-delivery of raw materials paid for in advance
C.A debt disbursed against the consideration for the time value of money
D.Any amount raised under any other transaction having the commercial effect of a borrowing
Explanation: Under Section 5(8), a financial debt is a debt disbursed against the consideration for the time value of money. An advance paid to a supplier for raw materials represents a transaction for goods and is classified as operational debt, not financial debt.

About the IIBF Resolution of Stressed Assets Exam

The IIBF Certificate Course on Resolution of Stressed Assets equips banking and finance professionals with in-depth knowledge of insolvency resolution, bankruptcy codes, and corporate turnaround procedures in India. It covers the Insolvency and Bankruptcy Code (IBC) 2016, CIRP, liquidation procedures, voluntary liquidation, role of IBBI, case laws, and RBI guidelines on restructuring and managing stressed assets.

Exam sponsor: Indian Institute of Banking & Finance (IIBF). The requirements and fees below concern the certification or admission exam, separate from our free practice resources.

Assessment

Single remote-proctored online MCQ paper in English. 100 questions for 100 marks; no negative marking. Subject: Resolution of Stressed Assets with Special Emphasis on IBC.

Time Limit

2 hours

Passing Score

50 out of 100

Exam / Certification Fees

Members ₹1,100 / Non-members ₹1,600 per attempt (+ convenience charges & taxes)

Exam sponsor website

Reported exam pass rate: not-published. IIBF does not publish a headline pass rate for the Stressed Assets certificate on the public rules/syllabus page. Exam sponsor website

Fees, eligibility, and exam policies can change. Confirm them with the exam sponsor before applying or paying.

Our practice resources: topics covered

We aim to reflect publicly available exam outlines and topic information in our study resources. Coverage, format, and difficulty may differ from the actual exam, and we cannot guarantee that every detail is accurate or current. Confirm exam requirements, fees, and policies with the official exam sponsor.

25%

Module A — Overview of Insolvency and Bankruptcy Code (IBC) 2016

History and objectives of IBC, key definitions (debt, default, financial creditor, operational creditor, corporate debtor), and constitutional validity of the Code.

30%

Module B — Corporate Insolvency Resolution Process (CIRP)

Initiation of CIRP by financial/operational creditors and corporate applicant, moratorium (Section 14), Interim Resolution Professional (IRP) and Resolution Professional (RP) appointment and duties, Committee of Creditors (CoC) constitution, duties and voting thresholds, resolution plan requirements and approval, and Pre-packaged Insolvency Resolution Process (PPIRP).

25%

Module C — Liquidation and Voluntary Liquidation Processes

Circumstances triggering liquidation, powers and duties of liquidator, valuation, assets of liquidation estate, exclusion of assets, waterfall mechanism under Section 53, and voluntary liquidation process.

20%

Module D — Regulatory Authorities, Case Laws & Financial Aspects

IBBI organization and functions, role of Information Utilities (IUs), Insolvency Professionals (IPs) and Insolvency Professional Agencies (IPAs), landmark Supreme Court decisions (Swiss Ribbons, Essar Steel, Mobilox, etc.), and banking frameworks for restructuring, provisioning, and classification of stressed assets.

Preparing for the IIBF Resolution of Stressed Assets Exam

What You Need to Know

  • Passing score: 50 out of 100
  • Assessment: Single remote-proctored online MCQ paper in English. 100 questions for 100 marks; no negative marking. Subject: Resolution of Stressed Assets with Special Emphasis on IBC.
  • Time limit: 2 hours
  • Exam / certification fees: Members ₹1,100 / Non-members ₹1,600 per attempt (+ convenience charges & taxes) Official sources

Using Our Practice Resources

  • Work through all 100 available questions
  • Review every answer and explanation
  • Track weak areas and revisit them
  • Use our AI tutor for tough concepts

IIBF Resolution of Stressed Assets: Suggested Study Strategy

1Understand the key difference between Financial Creditor (FC - Section 7) and Operational Creditor (OC - Section 9). Remember that OCs must serve a Section 8 demand notice before filing.
2Memorize the mandatory CIRP timelines: it must be completed within 180 days, with a possible one-time extension of 90 days, but the maximum overall period including litigation must not exceed 330 days.
3Understand the voting thresholds in the Committee of Creditors (CoC): 51% for routine administrative decisions, 66% for critical decisions (like RP appointment, CIRP extension, or resolution plan approval), and 90% for withdrawal of application (Section 12A).
4Carefully study the Waterfall Mechanism under Section 53. Know the exact priority of distribution: Insolvency resolution process costs first, followed equally by secured creditors (who relinquished security) and workmen dues (for 24 months preceding liquidation date), then employee wages, financial debts of unsecured creditors, and so on.
5Be clear on the trigger thresholds. Under Section 4 of the IBC, the minimum default threshold for initiating CIRP is ₹1 crore (increased from ₹1 lakh in 2020).

Frequently Asked Questions

What is the IIBF Certificate in Resolution of Stressed Assets?

It is an IIBF professional certification designed for banking and financial sector professionals to gain deep expertise in managing stressed assets, debt recovery, and navigating the Insolvency and Bankruptcy Code (IBC) 2016.

What is the exam pattern and pass mark?

The exam consists of 100 objective MCQs for a total of 100 marks, to be completed in 2 hours. The minimum passing mark is 50 out of 100. There is no negative marking.

How much does the IIBF Stressed Assets exam cost?

The registration fee is ₹1,100 for IIBF members and ₹1,600 for non-members per attempt, plus applicable convenience charges and taxes.

Who is eligible to apply for this certificate?

Any candidate who has passed the 12th standard (or equivalent) or who has completed the IIBF BC/BF examination is eligible. It is open to both members and non-members.

Are there any training or attendance requirements?

No. Candidates can prepare via self-study using IIBF recommended courseware and write the remote-proctored online examination from their home/office.

Are these official IIBF exam questions?

No. These are original, high-quality practice questions covering topics from the official IIBF Resolution of Stressed Assets syllabus, designed to help candidates prepare.