CIC Stay Order Restrains RBI Authority From Sharing Information on Saraswat Bank s NPAs, Defaulters moneylife.in - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from moneylife.in Daily Mail and Mail on Sunday newspapers.
The lady on the street implicitly trusts public sector banks (PSBs) for their sarkari parentage and presumes her deposits are safe, since a bank owned by the government will not be allowed to go under and cause any loss to the public in any eventuality
Is Bank of Baroda the Tip of the Iceberg or the Elephant in the Room?
Ranganathan V
09 June 2021 9
There is no finding the light at the end of the black hole
aka as public sector banks (PSBs). The mounting non-performing assets (NPAs) have been unyielding to any salutary solution and the government and the Reserve Bank of India (RBI) have practically thrown every known ammunition at the problem.
Starting with the asset quality review in 2015 when Dr Raghuram Rajan first recognised the extent of the problem bogging the banking system, to the prompt corrective action (PCA) of keeping 12 banks under watch, to bringing the insolvency process into motion under IBC (insolvency and bankruptcy code) and finally looking at privatising few of the banks, starting with two in the current year, there has been no lack of ideas and intent, but little in terms of demonstrated outcome.
Continuing with its tradition to disregard the Right to Information (RTI) Act, the Reserve Bank of India (RBI) once again failed to uphold the provisions of the Act by not sharing information on bank inspection reports. In fact,
On 10thApril,
The Times of India published a report to say that major banks, including State Bank of India (SBI), Bank of Baroda, Bank of India and HDFC Bank, had moved the Supreme Court (SC) of India to recall its six-year old judgement of 2015, which had ordered banks to provide certain information about their functioning under the Right to Information (RTI) Act. Banks and their expensive lawyers argued that “account holders may sue them for putting such details (client information) in the public domain” and that the order could be “misused for corporate rivalry” and affect the banking industry as a whole. Let’s examine how correct this claim is.