Supreme court and RBI on making the list of defaulters public
Sharing the names of large bank loan defaulters: Need of the hour. RBI argued the case of big defaulters in Supreme Court and put forward two pronged arguments to prevent making the names of big defaulters’ public: 1 There is more and more decentralization of the functions of the central bank and therefore it was a "herculean task" for it to get data from all banks. This should not be the reason for preventing the disclosure of names of these big defaulters, for two reasons: a. All this data is regularly available with RBI as part of various reporting systems from banks b. Banks themselves may me made mandatory to publish, at least their top defaulters names, as part of their financials. This can include top NPAs / SMAs above a cut off amount. RBI is claiming confidentiality. If it is some law coming in the way of disclosure of such vital information needed, the law needs to be amended in the public interest. The NGO society for publ