SC directs RBI to disclose info on bank inspection report under RTI

Tribune News Service

New Delhi, April 26  

The Supreme Court on Friday directed the Reserve Bank of India to disclose information with regard to its annual inspection report of banks under the Right to Information Act, unless they were exempted under the law.

A Bench headed by Justice L Nageswara Rao directed the RBI to review its policy to disclose information relating to banks under RTI, saying “it is duty-bound under the law”.

Acting on contempt petition filed by RTI activist Subhash Chandra Agrawal, the top court had in January issued contempt notice to the RBI for its refusal to disclose annual inspection report of banks under RTI.

Sparing the central bank of contempt proceedings, the Bench gave the last opportunity to it to comply with provisions of the RTI Act. “Any further violation shall be viewed seriously,” it added.

“The respondents (RBI) are duty-bound to furnish all information relating to inspection reports and other material apart from the material that was exempted…the judgment. Any further violation shall be viewed seriously by this Court,” the Bench said.

The court had earlier upheld a Central Information Commission verdict that said the RBI can’t deny information to an RTI applicant under the Act unless the information sought was exempt from disclosure under the law.

The RBI had contended that it can’t disclose information as the annual inspection report of the bank contained “fiduciary” information as defined under the RTI Act.

Agrawal had sought complete information including related documents from RBI on imposition of fines on some banks for violating rules. He had demanded the list of banks and the default for which show cause notices was issued to them before the fine was imposed.

But despite a 2015 verdict of the top court for disclosure of such information, the RBI had issued a “Disclosure Policy” under which it has listed certain information as being exempted from being disclosed of the RTI Act.

The RBI had refused to disclose such information on the ground of economic interest and holding such information in fiduciary relationship with these individual banks.

But now the top court has directed the RBI to review its policy to disclose information relating to banks under RTI.

In its 2015 verdict, the top court had said the RBI cannot withhold information under the “guise” of confidence or trust with financial institutions and is accountable to provide information sought by general public.

The RBI should take rigid action against those banks and financial institutions which have been indulging in “disreputable business practices” and said it cannot withhold information on defaulters and other issues covered under the RTI Act, it had said.