The details about the health of a bank, wilful loan defaulters and other sensitive banking information will now have to be shared with the public under the Right to Information (RTI) Act, ruled the Supreme Court on Friday.
Justices LN Rao and MR Shah passed the order even as the Reserve Bank of India (RBI) kept insisting that such information came within the fiduciary relationship between the banks and RBI and is thus exempt from disclosure. The stand was seen as a violation of an apex court order dated 2015. The Court had directed RBI to disclose reports prepared under the Banking Regulations Act under RTI, except in cases that might affect national security and state interest.
A bunch of contempt petitions were filed in the Supreme Court after RBI held on to its view and brought out a policy to bar disclosure of such information under RTI, despite orders from the Central Information Commission. RBI even challenged CIC's decision in various High Courts, which were subsequently transferred to the apex court.
"We could've taken serious view of the respondents continuing to violate directions of this Court. We give them a last opportunity to withdraw the Disclosure Policy insofar as it contains exemptions contrary to directions issued by this court," the bench ordered.
It added that following its December 2015 judgment, "the RBI is duty-bound to furnish all information relating to inspection reports of banks and other material...Any further violation shall be viewed seriously by the court." The December 2015 judgment spelt out that the RTI Act overrides all earlier laws and the only exceptions applicable are if the information affects national security, sovereignty, national economic interests, relations with foreign states, etc.
LOCKER-ROOM TALK
- The petitioners had requested RBI to share details of default in loans taken from public sector banks by industrialists
- Another RTI urged disclosure of inspection reports carried out in cooperative banks, which was denied by RBI
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
 "Wilful defaulters")
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}