Insolvency / Bankruptcy code Preface : While there is greater awareness about GST / Demonetization and there is enough debate about itpros and cons, one of the most important legislation and equally important legislation which is passed by the Govt is the Insolvency and Bankruptcy law (IBC) . What's the significance of this law with respect to our banking industry ? Is Vijay mallya’s 8000 Cr or Nirav Modi’s 13000 Cr PNB scam , the only problem with the public sector banks? How is IBC related to Vijay mallya ? Read further to understand how all these are related . Introduction : Before getting into the IBC / NCLT ( Sort of special court for solving Insolvency cases ) , it’s very important to understand the overall banking system in India. I will provide you with some important stats and how RBI works and how money circulation works in the country. As you all know bank is an intermediary between the depositor and lender. When you deposit 100 Rs