Banks Challenge Disclosure Of NPA And Defaulter Data Under RTI Act

4 major banks, Bank of Baroda, RBL Bank, Yes Bank and State Bank of India, have objected to the disclosure of sensitive regulatory information under the Right to Information Act. The banks approached the Central Information Commission after the Reserve Bank of India stated that records such as defaulter lists, NPAs, penalties and inspection reports are liable to be disclosed.

They argued that such disclosures could expose confidential supervisory information. The matter has now been referred to a larger bench of the CIC for adjudication.

RTI Applications And Information Sought

RTI applicants Dheeraj Mishra, Vathiraj, Girish Mittal and Radha Raman Tiwari filed separate applications with the RBI seeking detailed regulatory disclosures. Their requests covered information such as the top 100 NPAs, willful defaulters of Yes Bank, and inspection reports of SBI and RBL Bank.

They also sought documents related to a ₹4.34 crore monetary penalty imposed on Bank of Baroda following statutory inspection findings. The applications were aimed at enhancing transparency in banking operations and regulatory oversight.

Banks’ Objections and Commercial Concerns

The banks argued that disclosure of the requested information could harm their commercial interests and competitive position. They maintained that inspection reports and penalty details contain sensitive operational data.

Making such information public, they said, could undermine customer confidence and affect business relationships. These objections were submitted to the CIC after the RBI indicated that the information falls within the scope of disclosure under the RTI Act.

RBI’s Position on Transparency

The Reserve Bank of India stated that the information sought by the applicants is liable to be disclosed under the RTI Act. This position is consistent with the regulator’s emphasis on transparency and accountability in the financial system.

At the same time, the RBI acknowledged concerns raised by the banks. It clarified that the final determination rests with the CIC, which will balance public interest against possible commercial harm.

CIC Referral and Next Steps

Information Commissioner Khushwant Singh Sethi has referred the matter to a larger bench of the CIC for detailed consideration. The bench will examine whether regulatory documents such as inspection reports, penalty orders and defaulter lists should be disclosed under RTI provisions.

The case involves assessing the balance between transparency and confidentiality. The ruling is expected to set an important precedent for future banking regulation disclosures.

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Conclusion

The dispute over the disclosure of NPAs and regulatory reports under the RTI Act has placed major banks and the RBI at the centre of a legal and policy debate. While the RBI is advocating greater transparency, banks have raised concerns about possible harm to their commercial interests.

The matter highlights the tension between public accountability and confidentiality in banking regulation. The CIC’s decision will be critical in shaping the future scope of public access to sensitive banking information in India.

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