REGISTERED No. D-( D) -72 रजिस्ट्री सं ० डी-( डी) -72
भारत का राजपत्र The Gazette of India
असाधारण
EXTRAORDINARY
भाग 11-खण्ड 2
PART II- Section 2
प्राधिकार से प्रकाशित
PUBLISHED BY AUTHORITY
सं ० 44]
नई दिल्ना सोमत्र दिसम्बर 5 , 1983 / अग्रहायण 14, 1905
No. 44] NEW DELHI, MONDAY, DECEMBER 5 , 1983 / AGRAHAYANA 14 , 1905
इस भाग में भिन्न पृष्ठ संख्या की जाती है जिससे कि यह अलग संकलन के रूप में रखा जा सके ।
Separate paging is given to this Part in order that it may be filed as a separate compilation
LOK SABНА
The following Bill was introduced in Lok Sabha on the 5th December , 1983 :-
BILL NO . 129 OF 1983
A Bill to provide for the obligation of public financial institutions as to fidelity and secrecy .
BF it enacted by Parliament in the Thirty -fourth Year of the Republic of India as follows:-
Short title.
1. This Act may be called the Public Financial Institutions (Obligation as to Fidelity and Secrecy ) Act , 1983 .
2. (1) In this Act, " public financial institution " means-
Defini- tion.
7 of 1913 .
( a) the Industrial Credit and Investment Corporation of India Limited , a company formed and registered under the Indian Companies Act, 1913 ;
of 1956.
( b) the Industrial Reconstruction Corporation of India Limited , a company formed and registered under the Companies Act , 1956 ; or
I of 1956.
( c) any other institution , being a company as defined in section 617 of the Companies Act , 1956 or a company to which the provisions of section 619 of that Act apply, which the Central Government may , having regard to the nature of the business carried on by such institution , by notification in the Official Gazette , specify to be a public financial institution for the purposes of this Act .
(1) [PART II- THE GAZETTE OF INDIA EXTRAORDINARY
2
(2) Every notification issued under clause ( c ) of sub- section ( 1 ) shall , as soon as may be , afer it is issued , be laid before each House of Par- liament .
Obliga- tion as to fide- Jity and secrecy .
3. (1 ) A public financial institution shall not , except as otherwise provided in sub- section ( 2 ) or in any other law for the time being in force , divulge any intormation relating to , or to the affairs of, its constituents except in circumstances in which it is, in accordance with the law or practice ana usage , customary among bankers , necessary or appropriate for the public financial institution to divulge such information.
(2) A public financial institution may, for the purpose of efficient dis- charge of its functions , collect from , or furnish to ,-
(a ) the Central Government ; οι
23 of 1955.
38 of 1959 .
5 of 1970 .
40 of 1980 .
(b ) the State Bank of India constituted under section 3 of the State Bank of India Act , 1955 , any subsidiary bank within the meaning of the State Bank of India ( Subsidiary Banks ) Act , 1959 , any co.respond- ing new bank constituted under section 3 of the Banking Companies (Acquisition and Transfer of Undertakings ) Act, 1970 or under seccion 3 of the Banking Companies ( Acquisition and Transfer of Undertakings ) Act , 1980 , any other scheduled bank within the meaning of the Reserve Bank of India Act , 1934 ; or
2 of 1934 .
(c) any other public financial institution , such credit information or other information as it may consider useful for the purpose , in such manner and at such time as it may think fit .
2 of 1934.
Explanation . For the purposes of this sub - section , the expression " credit information shall have the same meaning as in clause ( c ) of section 45A of the Reserve Bank of India Act , 1934 subject to the modification that the bank- ing company referred to therein shall mean a bank referred to in clause ( h) of this sub -section or a public financial institution.
or 4. Every director , member of any committee, auditor or officer any other cmployce of a public financial instution to which this Act applies , shall ,-
Declara tion of fidelity and se- crecy.
( a) before entering upon his duties ; or
(b ) where he has entered upon his duties as such before the date on which this Act became applicable to such institution , within thirty days from the date on which this Act became applicable to such institution,
make a declaration of fidelity and secrecy in the form set out in the Schedule to this Act.
5. In the Industrial Finance Corporation Act , 1948 ,-
Amend- inent of Act 15 of 1948 .
(a) section 39 shall be re - numbered as sub - section ( 3 ) thereof and before sub - section ( 3 ) as so te - numbered , the following sub- sections shall be inserted , namely:
' ( 1 ) The Corporation shall not , except as otherwise required by this Act or any other law for the time being in force , divulge any information relating to , or to the affairs of, its constituents except in circumstances in which it is , in accordance with the SEC . 2 ] THE GAZETTE OF INDIA EXTRAORDINARY
3
law or practice and usage , custoniary among bankers , necessary or appropriate for the Corporation to divulge such information .
( 2 ) The Corporation may, for the purpose of efficient discharge of us functions under this Ac , collect hom , or furnish to-
( a ) the Central Government ;
23 of 1955
38 of 1959
5 of1970
40 of 1980 .
(b ) the State Bank of India constituted under section 3 of the State Bank of India Act , 1955 , any subsidiary bank wi.hin the meaning of the State Bank of India ( Subsidiary Banks ) Act , 1959 , any corresponding new bank constituted under section 3 of the Banking Companies ( Acquisition and Transter of Undertakings ) Aс. , 1970 or under section 3 of the Banking Companies ( Acquisition and Transfer of Under- takings) Act , 1950 , any other scheduled bank , any State co- opera ive bank of the Developmen, Bank ,
such credit info mation on other information as it may consider useful for the purpose , in such mamer and at such time as it may think fit.
of 1934 .
ex- Explanation . For the purposes of this sub - section , the pression "credit information " shall have the sante meaning as in clause ( c ) of section 45A of the Reserve Bank of India Act , 1934 subject to the modification that the banking company referred to thercin shall mean a bank referred to in clause ( b ) of this sub- section .';
( b ) in the Schedule , for the brackets , words and figures " ( See section 39 ) " , the brackets , words and figures " [See section 39 ( 3 ) ] " shall be substnuted .
Amend- 6. In the State Financial Corporations Act , 1951 ,-
ment of Act , 63 of 1951 .
(a ) section 40 shall be re - numbered as sub - section ( 3 ) thereof , and before sub - section ( 3 ) as so re - numbered , he following sub-section , shall be inserted , namely:-
(1 ) The Financial Corporation shall not , except as otherwise required by this Act or any other law for the time being in force , divulge any information relating 10 , or to the affairs of , its constituents except in circumstances in which it is , in accordance with the law or practice and usage , customary among bankers , neces- sary or appropriate for the Financial Corporation to divulge such information .
( 2 ) The Financial Corporation may. for the purpose of efficient discharge of its functions under this Act , collect from , or furnish to-
(a) the Central Government ;
23 of 1955.
38 of 1959 .
(b ) the State Bank of India constituted under section 3 of the State Bank of India Act , 1955, any subsidiary bank within the meaning of the State Bank of India ( Subsidiary Banks ) Act , 1959 , any corresponding new bank constituted under section 3 of the Banking Companies ( Acquisition and Transfer THE GAZETTE OF INDIA EXTRAORDINARY
[PART II-
5 of 1970 .
of Undertakings ) Act , 1970 or under section 3 of the Banking Companies ( Acquisition and Transfer of Undertakings ) Act, 1980 , any other scheduled bank , any State cooperative bank or the Development Bank , 40 of 1980 .
such credit information or other information as it may consider useful for the purpose , in such manner and at such time as it may think fit .
2 of 1934, Explanatic --For the purposes of this sub - section, the expres- sion " credit information " hali have the same meaning as in clause ( c ) of section 45A of the Reserve Bank of India Act , 1934 subject to the modification that the banking company referred to therein shall mean a bank referred to in clause ( b ) of this sub- section .' ; (b ) in the Schedule , for the brackets , words and figures " (See section 40 ) " , the brackets , words and figures " [See section 40 ( 3 ) ] " shall be substituted .
THE SCHEDULE
(See section 4)
DECLARATION OF FIDELITY AND SECRECY
1. do hereby declare that I will faithfully, truly and to the best of my skill and ability , execute and perform the du ies icquired of me as director, member of any Committee , auditor, officer Of other employce ( as the case may be) of the * and which properly relate to the office or position held by me in , or in relation to, the
*
I further declare that I will not communicate or allow to be communicated to any person not legally entitled thereto any information relating to the affairs of the * or to the affairs of any person nor will I allew any such person to inspect, or have access to , any books or documents having any dealing with the belonging to , on in the possession of , the and relating to the business of the business of any person having any dealing with the * or the *
Sioned before me .
Signature.
dere incat the name of the public financial institution concerned .
SEC . 2 ] THE GAZETTE OF INDIA EXTRAORDINARY
5
STATEMENT OF OBJECTS AND REASONS
The duty of bankers as to secrecy concerning their customers ' affairs arises out of their contractual relationship and it has been universally accepted as a customary usage in banking and has also been recognised in law . The various enactments providing for the establishment of public sector financial institutions contain provisions in respect of this obligation as to fidelity and secrecy . It is considered appropriate to make similar statutory provisions with respect to companies functioning as public financial institutions .
2. This opportunity is proposed to be availed of to make the provisions as to the obligation of secrecy and fidelity contained in the Industrial Finance Corporation Act, 1948 , and the State Financial Corporations, Act , 1951 , more comprehensive.
3. The Bill seeks to achieve the above objects .
PRANAB MUKHERJEE .
NEW DELHI ;
The 18th November , 1983 .
AVTAR SINGH RIKHY ,
Secretary .
PRNITED BY THE GENERAL MANAGER, GOVERNMENT OF INDIA PRESS, MINTO ROAD, NEW DELHI AND PUBLISHED BY THE CONTROLLER OF PUBLICATIONS , DELHI , 1984