RBI and RTI Act.

The Supreme Court's ruling to make the Reserve Bank to provide information under RTI Act without reservations weakens RBI,  RBI Act 1934, BR Act 1949 and does not serve any purpose particularly in understanding the weaknesses in the Regulation and Supervision of banks and the reasons behind ever increasing bad debts of banks particularly in the Public Sector Banks. The Reserve Bank has a unique role and responsibility in maintaining the stability of the Financial system and the  rupee value which essentially calls for the continued maintenance of trusts among the saving community in the banking and financial system. While the need to have the details of all defaulting borrowers is understandable and this in fact is available with the CIBIL, why the RBI should disclose the names and  findings of Inspection reports is not understandable.Many of the borrowers turn bad and the reasons if any for such a state of affairs are the requirements under RTI act, the banks and the Government Directors on the Banks Boards who are having the information can be compelled to disclose the information under RTI Act. The RBI can at best be asked to provide as to why the credit portfolio is becoming weak and the role of banks Boards and the role of Government and other individual nominees in weakening the credit portfolio.

Dr T V Gopalakrishnan