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Four major banks State Bank of India, Bank of Baroda, RBL Bank, and Yes Bank have approached the Central Information Commission to oppose disclosure of details on NPAs, defaulters, penalties, and RBI inspection reports sought under the RTI Act. The Reserve Bank of India has maintained that such information must be shared, citing Supreme Court rulings that support transparency. Following objections from the banks, the CIC has referred the matter to a larger bench and temporarily stayed disclosure. The case highlights ongoing tension between banking confidentiality and public accountability, with the final decision expected to shape transparency norms in India's banking sector and influence depositor confidence and regulatory oversight.
Four major banks Bank of Baroda, RBL Bank, Yes Bank and State Bank of India have approached the Central Information Commission (CIC) objecting to the disclosure of information related to non-performing assets (NPAs), lists of defaulters, penalties and inspection reports, even as the Reserve Bank of India (RBI) has maintained that such information is liable to be disclosed under the Right to Information (RTI) Act. Advertisement
The objections stem from multiple RTI applications filed by individuals seeking details including top NPAs, willful defaulters, RBI inspection reports and records linked to regulatory penalties. The RBI, acting as the public authority, examined the requests and concluded that the information could be disclosed under the RTI Act, citing binding Supreme Court judgments, including the landmark Jayantilal N. Mistry case.
Following this, the concerned banks filed appeals before the CIC, challenging the RBI's view. Information Commissioner Khushwant Singh Sethi has referred all related cases to a larger bench of the CIC, noting that similar matters were earlier examined by a division bench. Until a final decision is taken, disclosure of the information has been stayed.
In one case, Bank of Baroda opposed the release of documents related to an INR 4.34 crore monetary penalty imposed after statutory inspections. The RBI rejected the bank's claim that disclosure would harm its commercial interests, stating that exempt information under the RTI Act had already been severed and that the objections were not sustainable. Bank of Baroda has since moved the Supreme Court, seeking reconsideration of the Jayantilal N. Mistry ruling.
RBL Bank similarly objected to the disclosure of its inspection reports for specific financial years. The RBI reiterated that it does not share a fiduciary relationship with banks and that inspection reports fall within the scope of the RTI Act. While RBL Bank cited pending legal challenges, the CIC observed that there was no stay from the Supreme Court and referred the matter to a larger bench.
Yes Bank challenged the proposed disclosure of data related to top NPAs, willful defaulters and inspection reports. The RBI dismissed confidentiality arguments, stating that the RTI Act overrides earlier laws and that Supreme Court rulings clearly mandate disclosure of such information.
State Bank of India also opposed the release of show-cause notices and enforcement actions taken by the RBI. The central bank held that the information could be disclosed after removing exempt portions, emphasizing public interest and regulatory accountability.
The outcome of these proceedings is expected to have wider implications for banking transparency, depositor confidence and regulatory oversight. With public scrutiny of NPAs, penalties and supervisory actions remaining high, the final decision of the CIC's larger bench will play a key role in defining the balance between commercial confidentiality and the public's right to information.
Source: PTI
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