SC raises serious issues against RBI

The Supreme Court held that RBI should take rigid action against those banks and financial institutions which have been indulging in “disreputable business practices” and said it cannot withhold information on defaulters and other issues covered under the RTI Act. “We have surmised that many financial institutions have resorted to such acts which are neither clean nor transparent. The RBI in association with them has been trying to cover up their acts from public scrutiny. It is the responsibility of the RBI to take rigid action against those banks which have been practicing disreputable business practices,” a bench comprising justices M Y Eqbal and C Nagappan said. RBI and the Banks have sidestepped the general public’s demand to give the requisite information on the pretext of ‘Fiduciary relationship’ and ‘Economic Interest’. This attitude of the RBI will only attract more suspicion and disbelief in them. RBI as a regulatory authority should work to make the Banks accountable to their actions.