The Supreme Court on Friday ruled that its 2015 judgment which said that the Reserve Bank of India (RBI) is bound by law to provide information regarding private and public banks under the Right to Information Act, 2005, “did not take into consideration the aspect of balancing the Right to Information and the Right to Privacy”.
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The observation was made by a bench of Justices BR Gavai and CT Ravikumar, while rejecting preliminary objections to the maintainability of petitions filed by various banks challenging the RBI direction to them to disclose “confidential and sensitive information pertaining to their affairs, their employees and their customers” under the RTI Act in compliance of the SC decision.
The bench said that in view of the 2015 judgment, “the RBI is entitled to issue directions to the petitioners/banks to disclose information even with regard to the individual customers of the Bank” and that “in effect, it may adversely affect the individuals’ fundamental right to privacy”.
The judgement pointed out that subsequent to the 2015 decision, a nine-judge Constitution Bench of the court had in the Aadhaar case “held that the Right to Privacy is a fundamental right”.
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It said “no doubt that the Right to Information is also a fundamental right”, and added that “in case of such a conflict, the Court is required to achieve a sense of balance”.
The bench pointed out that “though the concept of finality of judgment has to be preserved, at the same time … if the Court finds that the earlier judgment does not lay down a correct position of law, it is always permissible for this Court to reconsider the same and, if necessary, to refer it to a larger Bench.
The banks had contended that the RBI direction is not only contrary to the provisions of the RTI Act, the RBI Act and the Banking Regulation Act, 1949, but also adversely affects the Right to Privacy of such banks and their consumers.
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The apex court will now hear the case on merits.
