The Supreme Court’s order to the Reserve Bank of India to reveal confidential annual inspection reports of banks under the Right to Information (RTI) Act may open a Pandora’s box and invite a plethora of litigations, fear bankers and analysts. The annual inspection report focuses on solvency, liquidity and operational health of a bank.
It elaborates on capital adequacy, asset quality, management, earnings, liquidity as well as system and control. If the RBI sees it fit, it can delve deep into a particular account that is causing a hole in the bank’s balance sheet. ...
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