Transparency Stalemate: CIC Blocks Bank Report Release Awaiting Supreme Court Decision

The Central Information Commission has halted the release of bank inspection reports and loan defaulter lists under the RTI Act, waiting for a Supreme Court ruling on related petitions. This move follows appeals from several banks challenging RBI's mandate for transparency, arguing it could harm commercial interests.

The Central Information Commission (CIC) has decided to block the release of bank inspection reports and lists of loan defaulters under the RTI Act until the Supreme Court provides further direction. This decision highlights the importance of the upcoming hearing on the matter in India's highest judicial body.

In light of the wide-ranging national implications, the transparency authority ruled that details related to Non-Performing Assets (NPAs) or penalties should not be disclosed until the Supreme Court addresses several pending bank petitions on Tuesday. The CIC emphasized the necessity of Supreme Court clarity, particularly in the context of the Jayantilal N Mistry judgment on RBI disclosures.

With appeals from major banks like State Bank of India, Bank of Baroda, and Axis Bank, among others, the Commission acknowledged the significant questions raised, opting to suspend information disclosure until a larger bench provides authoritative guidance. The Supreme Court is expected to be a turning point in this crucial debate over banking transparency.

(With inputs from agencies.)