Section 2.1 of the R7RS (draft 6) explicitly says "The #!fold-case directive causes the read procedure to case-fold [...] each identifier and character name subsequently read from the same port."
Here's the relevant excerpt: The following directives give explicit control over case folding. #!fold-case #!no-fold-case These directives may appear anywhere comments are permitted (see section 2.2) and are treated as comments, except that they affect the reading of subsequent data. The #!fold-case directive causes the read procedure to case-fold (as if by string-foldcase; see section 6.7) each identifier and character name subsequently read from the same port. (It has no effect on character literals.) The #!no-fold-case directive causes the read procedure to return to the default, non-folding behavior. Regards, Mark