 bill he lzt of 1183 2 ; _n:" i\ the public financial institutions (obligation as to fidelity and secrecy) bill, 1983 a billto pr01!ide for the obligation of public financial institutions lis tq fidelity and secrecy be it enacted by parliament in the thirty-fourth year of the rejyublic of india as follows:-1 this act may be called the public financial institutions (obligation short as to fidelity and secrecy) act, 1983 title 5 '1of18j3 2 (n in this act, "public financial institution" means-detlni-(a) the industrial credit and investment corporation of india lions limited, a company formed and registered under the indian companies act, 1913; (b) the industrial reconstruction corporation of india limited, a company formed and registered under the companies act, 19[6: or 1 of ls156 10 1 of 1958 15 (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 institu tlon, by notification in the official gazette, specify to be a pu"lfc 1lnancial institution for the purposes of this act (2) every notification issued under clause (c) of sub-section (1) shall, as soon as may be, after it is issued, be laid before each house of parliament obligation 88 to fidelity 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 5 force, divulge any information relating to, or to the aftairs of, its l'onstituents except in circ'wdstances in which it is, in accordance with the law or practice and usage, customary among bankers, necessary or appropriate for the public financial institution to divulge such information (2) a public financial institution mayj for the purpose of efbcient 10 discharge of its functions, collect from, or furnish to,-(a) the central government; or (b) the state bank of india constituted under section 3 of the state bank of india act, 1955, any subsidiary bank within the meaning 23 of 195& of the state bank of india (subsidiary banks) act, 1959, any 15 38 of 1959 corresponding new bank constitluted under section 3 of the banking companies (acquisition and transfer of undertakings) act, 1970 5 of 1970 or under section 3 of the banking companies (acquisition and transfer of undertakings) act, 1980, any other scheduled bank with-40 of 1980 in the meaning of the reserve bank of india act, 1934; or 202 of 1934 (e) any other public financial institution, sueh credit information or other information as it may consider useful for the purpose,tn 'such manner and at such time as it may think fit expla"ot~-fot tlie purp<a!s of this su1hlecuon, 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 modi- 25 2 of 1934 fication that the banking company referred to therein shall mean a bank referred to in clause (b) of this sub-section or a public financial institution 4 every director, member o!- any eommittee, auditor or oftlcer or 30 any other employee of a public financial institution to which this act applies, iihall,-(0) before entering upon his duties; or declaration of fidelity and secrecy (b) where he has entered upon his duties as such before the date on which this act became applicable to such institution, within 35 thirty days from the 'date on which this act became appucable to such institution, make a declaration of fidelity and secrecy in the form set out in tbe schedule to this act 5 in the industrial finance corporation act, 1948,-40 amendment of act 15 of 1948 (a) section 39 shall be re-numbered as aub-aectiod (3) thereof and before aub-aection (3) as 10 re-numbered, the fol1ow1nl mbsections shall be inserted, ,namely:-'(1) the corporation shall not, exeept; as otherwise required by this act or any other law fnr the time being in force, divulge 45 any information relating to, 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, necessary nr rppropriate for the corporation to divulge such information (2) the corporation may, for the purpose of efficient discharge of its functions under this act, collect from, or furnish to-(a) the central government; '))61 jo ez 10 '0861 jo 0  38 of 1959 5 of 1970 15 (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 of undertakings) act, 1970 or under section 3 of the banking companies (acquisition and transfer of undertakings) act, 1980, any other scheduled bank, any sta,e cooperative bank or the development bank, 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 10 1 of 1934 e:cplanatioll-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, 1"934 subject to the modification that the banking company referred to therein shall mean a bank referred to in clause (b) of this subsection'; (b) in the schedule, for the brackets, words and figures" (see section 39) to, the brackets, words and figures "[see section 39 (3)]" shall be substituted 6 in the state financial corporations act, 1951,-so amendment of act 63 of 1951 (a) section 40 slwll be re··numbered as sub-section (3) thereof, and before sub-section (3) as so re-numbered, the following subsections shall be inserted, namely:-'(1) the financial corporation shall not, except as otherwise required by this act or any other law for the time bein~ in for~e, divulge any information relating to, or to the affairs of, 1ts constituents except in circumstances in which· it is, in accordance with the law or practice and usage, customary among bankers, necessary or appropriate for the financial corporation to divulge such information (2) the financial corp~ratlon may, f~r theptirpose of efficient discharge of its functions under thls act, collect from, or furnish to-(a) the central government; (b) the state bank of india constituted under section 3 - t the state bank of india act; 1956, 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 of undertakings) act, 1970 or under section 3 of the banking companies (acquisition ancrtrandet of undertakings) act, 1980, any other scheduled bank, any state cooperative bank or the development bank, such credit information or other information as n may consider 10 useful for the purpose, in such manner and at such time as it may think fit explgnation-for the; purposes of this sub-section, the expression "credit information" shall have the arne meaning as in clause (c) of section 45a of the reserve bank of inaia act, 1934 152 of 1934 subject to the modification that the banking company referred to therein shall mean a bank referred to in clause· (b) of this subsection'; (b) in the schedule, for the brackets, words and figures ii (see section 40) ", the brackets, words and figures "[see section 40(3)]" 20 shall be substituted  the schedule (see section 4) dijclaration of rjdbun' and ucucyi, , do hereby declare that !l5 i will faithfully, truly and to the best of my skill and ability, execute and perform the duties required of me as direetor, member of any committee, auditor, ofbeer or otht!r employee (81 the case may be) of the - and whim 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 affail'l of the - or to the aftaira of any person havina any deajinl with the - nor will i allow any l\lch perion to inspect, 35 or have access to, any books or document belonging to, or in the poaeslion of, the - and relating to the busideu of the - or the business of any person having any dealing with the - ·signed before me signature -here insert tjae name of the publlc financial institution eonc:emed  statement of objects and reasonsthe 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 se:tor 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 publie 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, 1~8, and the state financial corporations act, 1951, more comprehensive 3 the bill seeks to achieve the above objects new dmli; pranab mukherjee the 18th november, 1983 extract from the industrial finance corporation act, 1948" (15 of 1948) - - - - - the schedule (see section 39)  declaration of fidelity and six:ucyi,  "  , do declare that i will faithfully, truly and to the best of my judgment, skill and ability, execute and perfonn the duties required of me as a director, officer, employee or auditor (as the case may be) of the industrial finance corporation of india and which properly relate to any office or position in the said corporation held by me 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 corporation nor will i allow any such person to inspt'ct or have access to any books or documents belonging to or in the possession of the corporation and relating to the business ol the corporation signat'uh'e    signed before me date   extract from the state financial corporations acr, 1951 - (63 or 1951) - - - - the schedule  (see section 40) declaration of fmelity ajo) sacucyi,  "  "  , do hereby declare that i will faithfully, tr'lly and to the best of my skill and ability execute and perform the duties required of me as a director, ofticer, employee or auditor (as the case may be) of the financial corporation and which property relate to any office or position in the said financial corporation held by me 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 financial corporation, nor will i allow any such person to inspect or have access to any books or documents belonging to or in the possession of the financial corporation and relating to the business of the financial corporation signature signed before me: it bill to provide for the obligation of public ftdanclal institutions as to &delity and secrecy (shri pnmab ku7nclf' mukherjee ii inilte, of ftmnce) 