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Mumbai22 minutes ago
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The two largest banks in the country, State Bank of India (SB) and HDFC Bank have reached the Supreme Court. Both demand that the Reserve Bank order be stayed. Both of them say that they cannot release sensitive data
- Banks say giving customer information means compromising confidentiality
- Disclosing sensitive information will present difficulties for banks
The two largest banks in the country, State Bank of India (SB) and HDFC Bank have reached the Supreme Court. Both demand that the Reserve Bank order be stayed. Both of them say that they cannot release sensitive data.
Case seeking information under RTI
The case is something like this. Both these banks have said that under the Right to Information (RTI) they cannot disclose sensitive data. However, RBI orders that data should be given under RTI. Both these banks told the Supreme Court yesterday that such an order of the Reserve Bank should be stayed. If they give economic figures, then they can be hurt. He said that the RBI directive should be stayed.
Not suitable for business operations
Both banks say that this is not right for their business operations. Giving customers information means compromising privacy. Although the directive was sought against the RBI, its objective was centered on the SC order that approved the giving of such data. The court had earlier restrained the RBI from disclosure under the Right to Information Act.
The SBI, through its lawyer Sanjay Kapoor, said that RBI is seeking to disclose the confidential and sensitive information of the bank, including the information of its employees and its customers under the RTI. However, it is exempted under the provisions of section 8 of the Act.
Tushar Mehta and Rohatgi appeared
Solicitor General Tushar Mehta and Senior Advocate Mukul Rohatgi appeared on behalf of SBI and HDFC. He told a bench of judges LN Rao and Anirudh Bose that disclosure of sensitive information such as inspection reports / risk assessment reports / annual financial inspection reports of banks would pose difficulties for them. Competitive banks or companies will start taking advantage of this which will not be in the interest of the banks. The court had earlier restrained the RBI from disclosing such reports under the Right to Information Act.
Information is sought under RTI
Explain that under RTI, such information is sought from banks, which is not possible to give. Many times such information is sought from banks. Although most of the figures are on the banks’ stock exchanges and the Reserve Bank’s website, some confidential data is sought, which the banks do not provide.