"One of the main reasons for the 2008 US subprime crisis was opaque functioning of the financial system that breeds malpractices."Do you think that RBI's actions and decisions should be brought completely under RTI in this context? Argue.

The RTI law states that on the grounds of economic interest, access to information can be restricted.
But the court says information is an empowering tool that could foster national interest.
One of the main reasons for the 2008 US subprime crisis was opaque functioning of the financial system that breeds malpractices.
The balance sheets of Indian banks are piled up with non-performing assets and the reason for this is not necessarily poor judgement in assessing projects but also funding of unviable projects by bank officials. To save the public banks, the government frequently infuses public money.
If the RBI frequently discloses the information about banks that breach rules, it would help the citizens to keep away from those institutions. Whenever there is a collapse of any private bank due to bad practices, it would hit small depositors the most. It is in the economic interest of the people that the RBI should make the banking operations more transparent and help the citizens to take informed decisions in their transactions with banks.
Citizens of the country have a right to know how the banking operations are running as it is the public money that the banks disburse.
However, low level information like contracts and departmental budgets can be exempted from RTI Act.

Question for UPSC Mains:
“One of the main reasons for the 2008 US subprime crisis was opaque functioning of the financial system that breeds malpractices.” Do you think that RBI’s actions and decisions should be brought completely under RTI in this context? Argue.

Published: March 17, 2016 | Modified:June 27, 2019

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