In a significant observation the Supreme Court of India has asked the banks’ regulator RBI to be more forthcoming with sharing information. It even warned RBI of contempt proceedings if its ruling is not respected.
The matter related to RTI activist’s SC Agrawal petition which sought complete information including related documents from RBI on the imposition of fines on some banks for violating rules.
Agrawal also demanded to know the list of banks and the default for which show cause notices were issued to them before the fine was imposed. The apex court directed RBI to disclose information on its annual inspection report of banks under the Right to Information (RTI) Act unless they are exempted under law.
“A bench headed by Justice L Nageswara Rao also directed the federal bank to review its policy to disclose information relating to banks under RTI, saying “it is dutybound under the law”. The bench, which did not go ahead with contempt proceedings against the RBI, made it clear that it was giving the last opportunity to it to comply with provisions of the transparency law”, reports Millennium Post.
The bench said it would have taken a serious view of RBI’s refusal to part with information under RTI. “Any further violation shall be viewed seriously,” the bench said. In January this year, the top court had issued contempt notice to RBI for not disclosing annual inspection report of banks under RTI, it added.
It bears recall that both SC and CIC had earlier felt that RBI should part with information unless the material is exempted from disclosure under the law. The RBI tried to stall the matter on one pretext or the other.
Instead RBI issued a “Disclosure Policy” under which it has listed certain information as exempted from being disclosed under the RTI Act. But SC clarified that RBI cannot withhold information under the garb of trust.