DNA:
Mumbai: Sunday, 24 January 2016.
Former CIC
Shailesh Gandhi has hailed Governor Raghuram Rajan's move to bring in
transparency in the Reserve Bank's functioning, but cautioned that it will
happen only when RBI follows the Supreme Court's recent judgment in letter and
spirit with regard to furnishing information on commercial banks.
Drawing a
parellel between Rajan's New Year message to the RBI staff and the CIC orders
against RBI between September 2011 and March 2012, Gandhi said, "In almost
10 cases of hearing, I had ordered RBI to furnish information related to
investigations and audit reports of banks...warnings or advisories issued,
minutes of governing board meetings, names of top defaulters and grading of banks,
among others, should be given under RTI." Gandhi was part of the CIC when
these orders were issued against the RBI.
"But the
central bank has challenged all these orders in higher courts claiming that it
is exempt from the RTI purview since those information are needed to discharge
its fiduciary duties, and that disclosing it would prejudicially affect the
economic interests of the nation," Gandhi told PTI.
In his New
Year message to RBI employees, Rajan advised them to ensure that the central bank
is not seen as a "paper tiger" and also to ensure that the rich and
powerful wrongdoers are not spared.
"We are
embedded in a changing community. What was OK in the past is no longer all
right when the public demands transparency and better governance from public
organisations," Rajan said in his internal mail.
On the recent
Supreme Court order flaying the central bank for refusing to furnish
information under the RTI Act about irregularities at some financial
institutions and other commercial banks, Gandhi said if Rajan follows up with
his New Year message of transparency and good governance, then it can be said
that the RBI is on highway to transparency.
On December
17 last, a two-judge bench of the Supreme Court comprising Justices M Y Eqbal
and C Nagappan said the RBI was accountable to disclose information under RTI
Act.
The apex
court clarified that RBI cannot withhold information under the
"guise" of confidence or trust with financial institutions and is
accountable to provide information sought by general public.
Furthermore,
the RTI Act under Section 2(f) clearly provides that the inspection reports,
documents etc fall under the purview of 'information' which is obtained by the
public authority (RBI) from a private body," the bench said.
The apex
court also termed as "misconceived" the RBI submission that
disclosure of such information will go against the economic interest of the
nation, saying "the RBI ought to act with transparency and not hide
information that might embarrass individual banks.
"It is
duty-bound to comply with the provisions of the RTI Act and disclose the
information sought by the respondents herein."
Gandhi said
though Rajan has not mentioned the SC order in the message, it imbibes spirit
of the court order. "I hope this is the harbinger of a change towards
greater transparency and accountability which will be emulated by other
government agencies," he said.