Indian Banks' Association

The Indian Banks' Association (IBA), formed on (26 September 1946), is an unregistered, voluntary association of like-minded banks and individuals in India [1]—an representative body of Indian banks and financial institutions based in Mumbai.[2] With an initial membership of 22 banks in India in 1946, IBA currently represents 247 banking companies operating in India. IBA was formed for the development, coordination, and strengthening of Indian banking and to assist the member banks in various ways, including the implementation of new systems and the adoption of standards among the members.[3][4]

Indian Banks' Association is managed by a managing committee, and the current managing committee consists of one chairman, 3 deputy chairmen, 1 honorary secretary and 26 members.

On 20 November 2020, Union Bank of India's MD & CEO Rajkiran Rai was elected as the new Chairman of IBA. Mr.Dinesh Khara, Chairman of State Bank of India; Mr.Madhav Nair, Country Head & CEO of Mashreq Bank; and Mr.S. S. Mallikarjuna Rao, MD & CEO of Punjab National Bank, were elected as Deputy Chairmen. Mr.Rakesh Sharma, MD & CEO of IDBI Bank, was elected as the Honorary Secretary for 2020–21. The Chief Executive of IBA is Mr.Sunil Mehta, and Dy Chief Executive Mr.Gopal Bhagat.

The Indian Banks' Association (IBA) is an unregistered, voluntary association of like-minded banks and individuals.[5] It lacks statutory recognition or legal incorporation. Established on September 26, 1946, initially comprising private banks, it later expanded its membership. Although some banks joined the public sector in 1970, the IBA's operations remained unchanged. Today, its members encompass a diverse range, including Public Sector Banks, Private Sector Banks, Foreign Banks, Urban Co-operative Banks, Asset Reconstruction Companies, Credit Rating Companies, Credit Guarantee Funds, Financial Services Companies, Credit Bureaus, and more.

Applicability of RTI Act

The status of the Indian Banks' Association (IBA) and its accountability under Indian law, including the Right to Information Act, 2005 has been a subject of debate and legal proceedings. IBA has asserted that it is a voluntary association of member banks and not a governmental entity or regulatory authority. This assertion implies that it considers itself independent of direct government control in its day-to-day operations and decision-making processes. The debate centres around whether the IBA should be considered a "public authority" under the Right to Information Act, 2005.[6]

In the RK Jain versus Indian Banks' Association case,[7] the Central Information Commission (CIC) ruled that the IBA qualifies as a public authority under the RTI Act due to its functions, majority control by government-appointed Managing Directors of public sector banks, and the funding it receives from public sector banks. The IBA challenged the CIC's order by filing a writ petition before the Delhi High Court. The High Court granted a stay on the CIC order, and the case remains pending. It's essential to consider the role of the government in influencing the IBA's decisions indirectly through its control over public sector banks. While the IBA may assert its independence, if its major members are government-controlled banks, it might be seen as an institution closely aligned with government interests.

The debate raises questions about transparency and accountability in the administration of organizations like the IBA that play a significant role in the banking sector. Transparency is a fundamental aspect of a participatory democracy, and government bodies should be accountable to the public. The resolution of this matter depends on the legal proceedings and judgments. If the court determines that the IBA qualifies as a public authority under the RTI Act, it would be subject to the provisions of the Act, including the appointment of a Central Public Information Officer (CPIO) and compliance with transparency requirements.

The issue revolves around whether the IBA, despite being a voluntary association of member banks, should be considered a "public authority" under the RTI Act due to its functions, control, and funding sources. Legal proceedings will ultimately determine the outcome and the extent of government oversight and transparency obligations on the IBA.

On 13 November 2017, based on Judicial decisions, the Indian Banks Association was declared a public authority under Section 2(h) of the RTI Act 2005. It directed Mr. V. Ramachandran, deemed PIO, to show cause why maximum penalty should not have been imposed against him for wrongfully denying the information sought within 21 days from the date of receipt of that order. The Commission, under Section 19(B)(a)(ii), required the IBA to appoint a CPIO and to provide the information sought to both the complainants within 30 days from the date of receipt of that order.

Based on the most recent data, the Indian Banks' Association (IBA) has not been accepting RTI (Right to Information) requests from the public since May 2018, as stated on their official website.[8][9] It's worth emphasizing that the policies and practices of organizations such as the IBA may evolve over time.

Managing committee

The banks which are members of the managing committee of the IBA include:[10][11][12]

Public Sector Banks

Private Sector Banks

Co-operative Sector Banks

Payments Banks and Small Finance Banks

References
  1. Court Orders - RK Jain vs IBA (Page 5) (PDF).
  2. "Indian Banks' Association". Iba.org.in. 23 April 2005. Archived from the original on 3 January 2012. Retrieved 4 November 2011.
  3. Indian Banking 2020. Making the Decade’s Promise Come True (PDF). Archived from the original (PDF) on 5 July 2016. Retrieved 1 August 2015.
  4. Fair practice Standards. Fair Practice Code (PDF). Retrieved 1 August 2015.
  5. Court Orders - RK Jain vs IBA (Page 5) (PDF).
  6. "Why is Indian Banks' Association not under RTI?". Archived from the original on 14 October 2022. Retrieved 25 February 2021.
  7. Court Orders - RK Jain vs IBA (Page 35) (PDF).
  8. Official Website, "Homepage Slider Notices", Indian Banks Association, 15 May 2018. Retrieved 18 September 2023.
  9. Official Website, "Media Link", Indian Banks Association, 15 May 2018. Retrieved 18 September 2023.
  10. "Managing Committee".
  11. Times of India. "IBA to sign wage revision pact with banks unions". Retrieved 1 August 2015.
  12. India Today. "Banks see Rs 4,725 cr outgo as staff get 15% wage hike". Retrieved 1 August 2015.

categories: Banking in India | Consumer protection in India

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