This refers to the Editorial ‘Why Turn the RTI heat on the RBI (ET dated 18/12/15). The Supreme Court’s ruling that the RBI should disclose the names of defaulters to people seeking such information under RTI Act though strengthens the RTI Act but definitely weakens the RBI Act, 1934 and BR Act 1949 in terms of which RBI has a role and responsibility to protect the interests of depositors who hold their hard earned savings in banks and provide the economy the badly needed capital support. While the need to maintain the health of banks by containing the bad debts formation is paramount and undisputed, and from this angle the staggering growth in the number of defaulters in banks is a cause for worry demanding stringent action both on banks and RBI as a Regulator and Supervisor of banks, but the solution definitely does not lie in making the RBI weak and compelling it to make its Inspection Reports and other findings to public on demand as such an action will have other consequences on the running of banks and maintaining financial stability which is very essential to support the growth and the development of the Economy and its Financial system. By and large RBI has been very fair and competent in discharging its responsibilities is a widely and worldly recognized fact and the weakening of banks particularly Public Sector banks if at all happens is apparently due to various extraneous factors which perhaps can be sought under RTI instead of the names of defaulters which are any way available with Credit Information Bureau (India) Ltd.. The Public Sector Banks’ Boards like Cooperative Banks' Board are weak and non professional and they are technically under the dual control of both the Government and RBI which is the major cause for all their weaknesses and definitely how they are made weak can be sought from RBI under RTI act instead of seeking for the details of defaulters. .
Dr T V Gopalakrishnan)
( Comment sent to ET )
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