SC;RBI should be proactive in disclosing information to information seekers under RTI Act.

The exemption contained in Section 8(1)(e) of  Right to Information Act, 2005 applies to exceptional cases and only with regard to certain pieces of information, for which disclosure is unwarranted or undesirable. If information is available with a regulatory agency not in fiduciary relationship, there is no reason to withhold the disclosure of the same. However, where information is required by mandate of law to be provided to an authority, it cannot be said that such information is being provided in a fiduciary relationship. Financial institutions have an obligation to provide all the information to the RBI and such an information shared under an obligation/duty cannot be considered to come under the purview of being shared in fiduciary relationship. One of the main characteristic of a Fiduciary relationship is "Trust and Confidence".
 Similarly, in another case the respondent Jayantilal N.
Mistry sought information from the CPIO, RBI in respect of a
Cooperative Bank viz. Saraspur Nagrik Sahkari Bank Limited
related to inspection report, which was denied by the CPIO on
the ground that the information contained therein were
received by RBI in a fiduciary capacity and are exempt under
Section 8(1)(e) of RTI Act. The CIC directed the petitioner to
furnish that information since the RBI expressed their
willingness to disclose a summary of substantive part of the
inspection report to the respondent. While disposing of the
appeal the CIC observed:-
“Before parting with this appeal, we would like to
record our observations that in a rapidly unfolding
economics scenario, there are public institutions, both
in the banking and non-banking sector, whose
activities have not served public interest. On the

contrary, some such institutions may have attempted
to defraud the public of their moneys kept with such
institutions in trust. RBI being the Central Bank is
one of the instrumentalities available to the public
which as a regulator can inspect such institutions and
initiate remedial measures where necessary. It is
important that the general public, particularly, the
share holders and the depositors of such institutions
are kept aware of RBI’s appraisal of the functioning of
such institutions and taken into confidence about the
remedial actions initiated in specific cases. This will
serve the public interest. The RBI would therefore be
well advised to be proactive in disclosing information
to the public in general and the information seekers
under the RTI Act, in particular. The provisions of
Section 10(1) of the RTI Act can therefore be
judiciously used when necessary to adhere to this
objective.”
REPORTABLE
IN THE SUPREME COURT OF INDIA
CIVIL ORIGINAL JURISDICTION
TRANSFERRED CASE (CIVIL) NO. 91 OF 2015
(Arising out of Transfer Petition (Civil) No. 707 of 2012)
Reserve Bank of India ……..Petitioner(s)
versus
Jayantilal N. Mistry …..Respondent(s)
Dated;December 16, 2015

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RBI relaxes norms for lending against gold jewellery

In a major relief to both consumers and banks, the Reserve Bank of India (RBI) has waived off the 1 Lakh limit on loan that banks can sanction against the pledging of gold ornaments and jewellery, and where the end use of the loan is not for agricultural purposes. The easing of the rule follows a representation that RBI received from banks requesting an increase in the approved ceiling and to analyze other conditions applicable to such loans, where both principal and interest are payable at maturity of the loan.

The RBI has however limited the Loan to Value (LTV) ratio at 75 percent of the value of the gold. The Central Bank has left the decision of lending limits to individual banks. The RBI draft in this regard states – “Banks, as per their Board approved policy, may decide upon the ceiling with regard to the quantum of loans that may be granted against the pledge of gold jewellery and ornaments for non-agricultural end uses”. The circular went on to add that tenure of all such loans shall not exceed 12 months from the sanction date.

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Master circular of Reserve bank of india on wilful Defaulters; critical analysis

Being a developing country, India has felt the waves of liberalization and globalization since 1991. It soon leads to a compelling requirement of financial system and thus gave a spur to the credit requirement in the market. As the volume of credit, credit agencies and credit beneficiaries increased manifold, a simultaneous increase in the risks and fraud associated with the credits also followed. A need was felt by the Authorities for surveillance of such delinquencies. CIBIL (Credit Information Bureau (India) Limited), India's first credit information Bureau, was set up in the year 2001 jointly by banks and financial institutions. The establishment of CIBIL was with the motive of improving the financial system thereby reducing the chances of Non Performing Asset (NPA).

A scheme was framed by Reserve Bank of India (RBI) in April, 1999 wherein the banks and notified financial institutions were required to submit to RBI the details of willful defaulters who made defaults of Rs. 25 lakhs and above. Further, wilful default hovered in the financial system and then the Reserve Bank of India, in consultation with the Government of India, constituted in May 2001, a Working Group on Wilful Defaulters (WGWD).

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