REGULATORY · INDIA
Karnataka commission brings Apex Bank under RTI
Change
The Karnataka Information Commission ruled that the Karnataka State Co-operative Apex Bank qualifies as a 'public authority' under the Right to Information Act, 2005.
Why it matters
The commission directed the bank to comply with provisions of the Right to Information Act, 2005. The decision followed a second appeal seeking loan documents submitted by Nirani Sugars Ltd. between March 2022 and June 2024. The bank's argument that it was neither owned nor substantially financed by the State government was rejected. The commission cited the Registrar of Cooperative Societies' role as an ex officio director and statutory inspection, inquiry, and audit powers under the Karnataka Co-operative Societies Act, 1959.
Implications
- · Compliance obligation to accept and process RTI requests for the bank’s records, including financial and loan documentation.
- · Loan application and borrower files held by the Apex Bank become subject to disclosure under RTI procedures.
- · Oversight grounds strengthened by the Registrar of Cooperative Societies' ex officio board role and statutory inspection, inquiry, and audit powers.
Who is affected
- · State cooperative apex bank board and management
- · Borrowers and loan applicants to the Apex Bank
- · RTI applicants and information officers
- · Registrar of Cooperative Societies and oversight officials
Source
Topics
World & Politics Governance Law & Public Safety Compliance Finance & Banking Banking Regulation