A serious controversy has erupted over an alleged ₹55 crore fraud at the Khalsa College branch of Punjab & Sind Bank, Delhi University. Under the Right to Information (RTI) framework, a whistleblower filed a request seeking documents and explanations. However, the bank’s Central Public Information Officer (CPIO) has claimed exemption under RTI Section 8, which allows withholding details affecting commercial confidence or fiduciary relationships. On 4 September, the Central Information Commission (CIC) adjourned the appeal after finding that the CPIO had not provided satisfactory justification for invoking exemptions. The delay has angered many who believe transparency is essential for accountability in banking.
RTI vs. Banking Secrecy: Legal Tussle
At the core of the dispute is the tension between public interest and legal confidentiality. The RTI request asked for internal audit reports, loan documents, customer correspondences, and details of the investigation carried out. The bank has resisted disclosing these, citing sections of the RTI Act that protect confidential commercial information and investor/borrower privacy. The CIC, however, has made clear that blanket claims of confidentiality are not enough. The commission demanded the CPIO articulate specific reasons why each piece of information is exempt, how disclosure would cause harm, and whether partial disclosure is possible. This insistence underscores the idea that exemptions under RTI must not become a cover for opacity.
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Implications: Trust, Precedent and Public Interest
This case carries implications far beyond one branch or one alleged fraud. A ruling that supports wider disclosure could set a precedent obliging banks and public institutions to embrace greater transparency in financial irregularity cases. Meanwhile, failure to comply could erode public trust, not just in Punjab & Sind Bank, but in the banking sector overall. For citizens who entrust banks with their savings, the ability to know what happens, or fails to happen behind closed doors is vital. The CIC’s stand that RTI exemptions require concrete reasoning is a critical moment in balancing institutional secrecy and citizens’ right to know. The decision is awaited eagerly, with many hoping it will strengthen governance and accountability in public banking.