RTI Act — Frequently Asked Questions
Can a borrower file an RTI application against their bank to get loan account information?
Yes, if the bank is a public sector bank (nationalised bank, SBI, or any bank substantially financed by the government). All nationalised banks are "public authorities" under the RTI Act. A borrower can file an RTI application with Rs. 10 fee seeking their complete loan account statements, correspondence, SARFAESI notices, valuation reports, and NPA classification details. The bank must respond within 30 days. Private sector banks like HDFC, ICICI, and Axis are not public authorities — RTI does not lie against them directly, though information about them held by RBI (a public authority) may be sought from RBI.
What information about a bank's SARFAESI proceedings can be obtained through RTI?
Through RTI against a public sector bank, a borrower can obtain: copies of the Section 13(2) demand notice, the Section 13(4) possession notice, the bank's valuation report for the secured asset, the Section 13(8) notice for the scheduled sale, and correspondence related to the NPA classification. The CIC has consistently held that SARFAESI notices addressed to the borrower cannot be withheld under Section 8 exemptions — these are the borrower's own documents. Valuation reports have also been held disclosable as they are not "commercial confidence" of a third party.
Can a bank refuse RTI on grounds of commercial confidence?
Partially, but not broadly. Section 8(1)(d) exempts commercial confidence, trade secrets, and intellectual property of third parties. A bank can legitimately refuse to disclose internal credit appraisal methodology, the bank's own risk assessment models, or commercially sensitive information about other customers. However, a borrower's own account information, their own loan documents, and standardised bank policies (OTS policy, NPA classification criteria) are not "commercial confidence" — the CIC and courts have consistently required their disclosure. The landmark RBI v. Jayantilal Mistry (2015) SC ruling narrowed the fiduciary and commercial confidence exemptions significantly.
What is the appeal process if a bank refuses an RTI application?
Two-stage appeal process: First, file a First Appeal within 30 days of refusal (or 30 days after the 30-day response deadline if no response was received) to the First Appellate Authority — a senior officer in the same bank designated for this purpose. If the FAA also refuses or fails to respond within 30 days, file a Second Appeal to the Central Information Commission (CIC) within 90 days. For public sector banks under Union government jurisdiction, the CIC hears second appeals. CIC orders are binding — banks must comply. If the CIC finds the refusal was unjustified, it can order disclosure and impose a penalty of up to Rs. 25,000 on the defaulting PIO.
Can a company (borrower-company) file an RTI application against a public sector bank?
No — only individual citizens can file RTI applications. A company, LLP, or partnership firm cannot file RTI in its own name. In practice, a director, partner, or authorized individual files the RTI application in their personal capacity on behalf of the borrower-entity's interests. The application should clearly specify the information sought, which may relate to the company's account, and identify the applicant as an individual citizen. Courts have not extended RTI rights to corporate entities.
Is RBI covered by the RTI Act?
Yes. The Reserve Bank of India is a statutory body established under the RBI Act, 1934, and is a "public authority" under the RTI Act. Citizens can file RTI applications with the RBI for information about its regulatory actions, circulars, and directions. The landmark Supreme Court decision in RBI v. Jayantilal Mistry (2015) specifically held that RBI cannot claim fiduciary exemption to withhold information about banks it regulates — RBI is accountable to the public through RTI. This ruling significantly expanded the scope of information accessible from RBI about banking regulation and regulatory forbearance.
What information can a borrower get from a bank under RTI to challenge an NPA classification?
A borrower challenging NPA classification should seek through RTI: the exact date of NPA classification; the basis for NPA classification (which repayment obligation was missed and for how long); the account statement showing all debits and credits over the relevant period; any restructuring or moratorium approvals that may have altered the repayment schedule; and the bank's written communications about the account before NPA classification. This information is essential for a Section 17 DRT challenge or a civil court suit — particularly if the borrower claims the NPA was premature or incorrectly classified.
What happens if a bank fails to respond to an RTI application within 30 days?
Non-response within 30 days is a deemed refusal — the applicant can immediately file a First Appeal before the bank's First Appellate Authority. If the FAA also fails to respond or upholds the refusal, a Second Appeal lies to the CIC within 90 days. At the CIC stage, the CIC can impose a penalty on the defaulting PIO of Rs. 250 per day of delay (up to Rs. 25,000) and recommend departmental action. The CIC can also order the bank to provide the information within a specified time. Deliberate obstruction or malicious denial of information can also attract the Rs. 25,000 penalty.
Can RTI be used to obtain the bank's OTS (one-time settlement) policy?
Yes. Public sector banks' OTS policies are not exempt from disclosure — they are standardised internal policies, not commercially sensitive proprietary information. The CIC has held in multiple cases that a bank's settlement/compromise policy must be disclosed under RTI. Obtaining this policy through RTI before entering OTS negotiations gives the borrower significant advantage — knowing the bank's internal benchmarks (percentage of principal, waiver limits, authority levels) allows the borrower to negotiate from an informed position. Banks are required under Section 4 proactive disclosure to publish standard policies, which should include OTS frameworks.
RTI Strategy in Banking and NPA Matters
Advocate Subodh Bajpai advises borrowers on using RTI to gather information from public sector banks — loan account details, SARFAESI notices, valuation reports, and settlement policies.