DBOD.No. BP.BC.12/21.01.023/98
February 11, 1998
Magha
22, 1919 (Saka)
All
Commercial Banks
(excluding Regional Rural
Banks)
Dear Sir,
Furnishing of data -
violation of secrecy obligations
As the banks are aware,
requests for data/information on certain aspects of their business are
received from time to time from Government and other agencies for
academic/theoretical purposes. This issue was examined in the background of
the bankers' obligation to maintain secrecy in respect of customers transactions.
The scope of the secrecy law in India has generally followed the common law
principles based on implied contract. The bankers' obligation to maintain the
secrecy arises out of the contractual relationship between the banker and
customer, and as such no information should be divulged to third parties
except under circumstances which are well defined. The following exceptions
to the said rule are now accepted.
Where
disclosure is under compulsion of law
Where
there is a duty to the public to disclose
Where
interest of bank requires disclosure and
Where
the disclosure is made with the express or implied consent of the customer.
The banks should therefore,
appreciate the implications of furnishing information that would violate the
provisions of secrecy in the background or circumstances stated above.
2. In view of the position
clarified above, we advise that whenever such requests are received, the
banks should satisfy themselves that the information being sought is not of
such a nature as will violate the provisions of the laws relating to secrecy
in the banking transactions. In cases in which the banks have doubts whether
the furnishing of information might violate secrecy provisions, they should
get specific legal advice.
Yours faithfully,
(J.B. Mhatre)
Deputy General Manager