We have reported extensively on the SC’s path-breaking judgement of 2015 which decided on 11 orders of the central information commission (CIC) of which 10 were passed by Shailesh Gandhi. The judgement, while dismissing the Reserve Bank of India’s (RBI’s) objection to share inspection reports, had observed, “By attaching an additional ‘fiduciary’ label to the statutory duty, the regulatory authorities have intentionally or unintentionally created an in terrorem effect.”
This should have put an end to the long struggle for to get information from banks, which begun in 2010-11. But banks are ensuring there is no end to this war to block access to information. On 20th April, Moneylife Foundation organised a webinar to understand the latest attempt by banks to avoid disclosure and transparency by seeking a recall of the path-breaking 2015 judgement. Prashant Bhushan, renowned senior counsel in the Supreme Court, who has waged a pro bono battle on behalf of ordinary citizens, explained the situation. 
Vivek Velankar sought information on large bank defaulters (over Rs100 crore) and the amounts recovered by the banks after the write-off. This information has already been put in the public domain by bank unions. And, yet, only 10 banks provided the information he sought. These too have been analysed (https://www.moneylife.in/tags/bankloot.html) by us. They revealed that 12 nationalised banks wrote off Rs6.32 lakh crores in eight years and recovered just 7% from wilful defaulters. This exposed the false claim by the finance ministry and its high-profile consultants that banks continue to pursue defaulters and recover money written off. 
Double Standards: Activist Subhash Chandra Agarwal and former central information commissioner (CIC) Prof Sridhar Acharayalu both unmasked the questionable claim about banks protecting the privacy of borrowers. Mr Agarwal pointed out how banks have no concern about the privacy of smaller defaulters. SBI routinely publishes advertisements naming borrowers and amounts owed as part of the recovery policy of shaming them. Prof Acharayalu said that, in one case in Andhra Pradesh, a borrower, unable to bear the ignominy, resorted to suicide. And, yet, the banks claim exactly the opposite in court, about fiduciary information. 
Until the reports were put in the public domain, nobody knew why bank supervision was so poor and inspections a failure. Well-known banking analyst, Hemindra Hazari, said that even these perfunctory reports have a wealth of information. For instance, while bank annual reports tend to glorify themselves, it is RBI inspection that revealed poor and deteriorating internal audit rating for HDFC Bank, which is India’s most valuable bank. It also showed the absence of any follow-up or action by the RBI, despite the deterioration.
Rajendra Ganatra, a former banker, and R Balakrishnan, with vast research and fund management expertise, also pointed to superficial inspection, lack of follow-up and the lack of interest in setting things right in both the inspection reports analysed by them (Axis Bank and SBI, respectively). Mr Balakrishnan said it almost amounts to criminal negligence by public servants because the resulting humongous losses are eventually dumped on the public exchequer. This, he said, is good enough reason to make the reports public. 
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But I believe the entire banking model is flawed and thats why RBI could not answer following questions to me in RTI
(a) Loans create deposit or deposit create loan in banking sector
(b) the prime role of RBI is price stability and maintain purchasing power of ruppe as per preamble of RBI.it was a shock to me when RBI informed in RTI that "The Reserve Bank does
not officially calculate the comparable values of the
Rupee at different points in time". This is callous attitude of RBI towards maintaing its role of price stability. If they have no data on purchasing power of ruppe than it was not a surprise that RBI has not carried out a study which finds why RBI is not able to maintain price/monetary stability since 1947 despite this being its main duty as per RBI preamble.when India was weak in 1947 than rs 1 was almost equivalent to 1 USD.Today 1 USD = INR 70. RBI failed in its duty of monetary/price stability.
(c) RBI has failed to have price stability in land prices and has not carried out any study why they are not able to maintain price stability of land prices since 1947. population from 1947 has increased only 3 times from 1947 wheres land prices have skyrocketted 900 to 2000 times. this defies logic of demand and supply
(d) RBI has not carried out any study which allows money multiplication as per RBI act 1934 and banking regulation act 1949. every economics books says that money multiplication is there in banking sector but the act is silent on money multiplication.
(e) If every note is issued by RBI than how can there be M1,M2,M3,M4. RBI was silent in RTI on who creates M1,M2,M3,M4
(f) who creates high powered(narrow)money and who creates broad money. no reply from RBI ( is it RBI or commercial banks)
(g) RBI could not give me a copy of rules who decides how much money to print and for what purpose the money is to be printed in RTI
The judgement in a case filed by a small defaulter (preferably a small business company) who has been named and shamed can either be in his favor or against him.
If, in his favor, all small defaulters can be mobilized to file similar cases and claim hefty compensation.
If, not in his favor, the Court does not accept the argument that big defaulters client information cannot be put in the public domain and this helps the case in the Supreme Court.
This may be settled once and for all if a small defaulter sues the bank for putting his details in the public domain.
Q