The Supreme Court rapped the
RBI, directing it withdraw its 2016 policy on non-disclosure of information on big loan defaulters. The apex court in a stern ruling said the central bank was duty bound to reveal information related to wilful offenders, adding that any further violation would invite contempt of court proceedings.
Calling it a "last opportunity", a bench of Justices L Nageswara Rao and MR Shah asked the central bank to withdraw it's non-disclosure policy, which was in violation of top court’s judgement.
SC and the Central Information Commission had earlier held that the RBI cannot refuse to put the inspection reports in the public domain under the transparency law.
In January this year, the top court had issued contempt notice to
RBI for not disclosing annual inspection report of banks under RTI.
The CIC too had issued a show-cause notice to Urjit Patel, then governor of the RBI, for not honouring a judgment of the apex court on disclosure of wilful defaulters’ list who had not paid loans of Rs 50 crore and more.
RBI had refused to disclose banks’ annual inspection reports arguing that it has the discretion to provide details depending on the nature of information and the consequences it would have on the country's economy.
RBI had raised objections that disclosure of the report may create unwarranted panic and could trigger a run on bank as such info is often amplified by the media.