Central Information Commission, New Delhi

File No. CIC/SH/A/2016/000149

Right to Information Act-2005-Under Section (19)

Date of hearing : 13th February 2017

Date of decision : 13th February 2017

Name of the Appellant : SHRI ASHWANI ARORA

F- 20, (BASEMENT), EAST OF
KAILASH, NEW DELHI -110065

Name of the Public : CENTRAL PUBLIC INFORMATION OFFICER,

Authority/Respondent UNION BANK OF INDIA
UNION BANK BHAWAN, 14TH FLOOR,
239, VIDHAN BHAWAN MARG,
NARIMAN POINT, MUMBAI,
MAHARASHTRA- 400021

RTI Application filed on : 27/06/2015

CPIO replied on
First Appeal filed on
First Appellate Authority order on
nd
2 Appeal received on
: 05/08/2015
: 27/08/2015
: 19/10/2015
: 06/01/2016

The Appellant was present in person.

On behalf of the Respondents, Shri Anshu Alok, Chief Manger was present at
the NIC Studio, Mumbai.

Information Commissioner : Shri Sharat Sabharwal

Information sought

1. Copies of all circulars and guidelines issued by the Bank for arriving at One

Time Settlement (OTS) in the account classified as Non Performing Asset (NPA)

known as Recovery Policy of the Bank issued since 1.4.2008 till date.

CIC/SH/A/2016/000149
 2. Copies of circular issued by the Bank specifying/ showing discretionary power

chart of delegated authority for arriving at One Time Settlement in Non

Performing Asset issued since 1.4.2008 till date.

3. Copies of guidelines/circular received from RBI for arriving at One Time

Settlement with respect to Non Performing Asset received from 1.4.2005 till

date.

The CPIO reply

The CPIO denied the information on point nos. 1 & 2 under section 8 (1) (d) of the RTI

Act. Regarding point no. 3, he stated that RBI guidelines were available on the

website of the Reserve Bank of India.

Grounds of the First Appeal

Not satisfied with the CPIO’s reply.

Order of the First Appellate Authority

The FAA upheld the CPIO’s reply and directed the CPIO to provide the latest

guidelines on how an account was classified as NPA.

Grounds of the Second Appeal

Aggrieved with the CPIO’s reply and order of the FAA.

Relevant facts emerging during the Hearing, Discussion and Decision

The Respondents reiterated the reply of the CPIO.

CIC/SH/A/2016/000149
2. The Appellant questioned the decision of the Respondents to deny the
information in response to point No. 1 under Section 8 (1) (d) of the RTI Act. He
stated that he would not press with his request for information at point No. 2 and
prayed for furnishing of the information sought by him at point No. 3. In support of
his request of information at point No. 1, the Appellant stated that the Reserve Bank
of India, as the regulatory authority, issues guidelines to the banks to deal with NPAs
and cases involving one time settlement. He submitted that vide its circular No.
RBI/2012-13/273 dated 1.11.2012 concerning guidelines for rehabilitation of sick
MSEs, the RBI had asked banks to place their one time settlement scheme on their
website and publicise it through other possible modes of dissemination. He further
submitted that the SBI have placed their scheme on their website and that PSB and
PNB provided him similar information.

3. The representative of the Respondents stated that the criteria for arriving at
one time settlement (OTS) vary from bank to bank. The scheme of the bank, which
is in the nature of internal guidelines for the officers of the bank, contains
information not only regarding the marks to be assigned to various parameters while
considering a case of OTS, but also guidelines concerning negotiating the matter with
the borrower so as to get maximum return for the bank. Disclosure of such
information would compromise the negotiating ability of the bank in cases of OTS.
Therefore, the information was denied under Section 8 (1) (d) of the RTI Act.

4. In response to our query, the Appellant stated that while he had sought the
information since 1.4.2008, he would be satisfied if the bank’s guidelines concerning
OTS applicable for the years 2015 and 2016 are provided to him.

5. We have considered the records and the submissions of both the parties and in
so far as point No. 3 is concerned, the CPIO is directed to provide to the Appellant the
reference number(s) and date(s) of the RBI circular(s), based on which the
Respondent Bank drew up its OTS scheme, applicable in the years 2015 and 2016.
The CPIO should also convey to the Appellant the weblink of RBI at which these
circulars can be seen. As regards point No. 1, we agree with the submission of the

CIC/SH/A/2016/000149
Respondents that for the reasons cited by them, the information sought at point No. 1
would contain a good deal of information, the disclosure of which would compromise
the competitive position of the bank. Therefore, such information would attract the
exemption from disclosure under Section 8 (1) (d) of the RTI Act. Further, we note
that the RBI circular dated 1.11.2012, cited by the Appellant, required banks to put in
place a non-discriminatory OTS scheme for recovery of NPAs for MSE sector and place
it on their website. There was no instruction for making public the general OTS
scheme of the bank. In view of the foregoing, the CPIO is directed to provide the
information sought at point No. 1, in respect of the years 2015 and 2016, to the
Appellant, after redacting from it, under Section 10 of the RTI Act, the information
concerning delegation of powers to the officers of the bank regarding OTS and the
information that is exempted from disclosure under Section 8 (1) (d) of the RTI Act.

6. The CPIO should comply with our above directives, within thirty days of the
receipt of this order, under intimation to the Commission. The information should be
provided free of charge.

7. With the above directions and observations, the appeal is disposed of.

8. Copies of this order be given free of cost to the parties.

Sd/-
(Sharat Sabharwal)
Information Commissioner

Authenticated true copy. Additional copies of orders shall be supplied against

application and payment of the charges prescribed under the Act to the CPIO of this
Commission.

(Vijay Bhalla)
Deputy Registrar

CIC/SH/A/2016/000149