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Victim (..)     18 April 2012

Can bank disclose bank statement without authorization

1) Can Bank (Private) share the Bank Account Statement of Account holder without taking permission from Account Holder?

2) Kindly share the Section/Act under which Banks are required to maintain the secrecy of it's account holders.

3) What action can be initiated against the bank if they share the details without taking permission from account holder?



 7 Replies

Kumar Doab (FIN)     18 April 2012


The customer information collected from the customers shall not be used for cross selling of services or products by the Bank, their subsidiaries and affiliates. If the Bank proposes to use such information, it should be strictly with the consent of the accountholder.


The Bank shall not disclose details / particulars of the customer's account to a third person or party without the expressed or implied consent from the customer. However, there are some exceptions, viz. disclosure of information under compulsion of law, where there is a duty to public to disclose and where interest of the Bank requires disclosure.

You are within your rights to complain to IBA, BCSBI,RBI.

Attached File : 763398377 iba.txt, 763398377 iba scb.txt downloaded: 670 times

Kumar Doab (FIN)     18 April 2012

  1. You choose how, and with whom we share your information. We'll only share your personal and financial information with others, including companies outside of the ING DIRECT family of companies†, if:
    • You ask us to
    • You authorize us to process or service a transaction or product
    • When the law requires us to share with authorities
    • The company assists us in marketing our products and services
    • We are allowed by law (e.g. sharing with data processors, credit bureaus, and printers). Remember, it's possible that other companies outside of the ING DIRECT family of companies may obtain your name and address from other sources and send you information on their products and services.
  2. We'll only collect information necessary to serve your financial needs, to protect against fraud and to fulfill legal requirements.
    We collect information:
    • From your deposit or loan applications, and any other information you provide to us orally, in writing, or through the Internet
    • From your transactions and communications with us
    • From credit bureaus
    • From public records
  3. We keep your information secure and confidential.
    The employees with access to your information need it to do their jobs, and are required to strictly maintain your confidentiality. All employees are kept up-to-date on our security and privacy practices. In addition, we maintain physical, electronic and procedural safeguards that comply with (and often exceed) Federal standards. And we routinely test our systems and website to ensure that unauthorized access doesn't occur.
  4. Need to close your account? We still maintain your privacy.
    If you decide to close your account or become an inactive Customer, we'll continue to follow our privacy policy with the information we have about you and your account(s).

Anjuru Chandra Sekhar (Advocate )     20 April 2012

Bank has right to share information about your account with fellow bankers and also with CIBIL.

Victim (..)     20 April 2012

Thanks a lot Mr. Kumar and Chandrasekhar

RAJU O.F., (Advocate)     20 April 2012

Banks don't have any specific right to disclose particulars of your account to outsiders, violating secrecy of customers; but banks take an undertaking from you, under the KYC norms, to allow the bank to disclose such particulars to CIBIL or other bankers/ FIs.

1 Like

Kumar Doab (FIN)     20 April 2012

It is felt that the discussion has drifted from bank account to credit card also.

Banks can not take it as a matter off right. Even if banks have modified the application form banks have to adhere to a set system.Banks have to supply a proper notice before reporting to CIBIL

6.2 Customer confidentiality:

(a) Instances have come to light where banks, as part of the MITCs, obtain the consent of the customer for sharing the information furnished by him while applying for the credit card, with other agencies.Banks should give the customer the option to decide as to whether he is agreeable for the bank sharing with other agencies the information furnished by him at the time of applying for credit card.The application form for credit card may be suitably modified to explicitly and clearly provide for the same.The application form for credit card may be suitably modified to explicitly and clearly provide for the same.Further, in case where the customers gives his consent for the bank
DBOD-MC on Credit card operations of banks - 2010
sharing the information with other agencies, banks should explicitly state and explain clearly to the customer the full meaning/ implications of the disclosure clause. Banks/NBFCs should satisfy themselves, based on specific legal advice,that the information being sought from them is not of such nature as will violate the provisions of the laws relating to secrecy in the transactions. Banks/NBFCs would be solely responsible for the correctness or otherwise of the data provided for the purpose.

b. In case of providing information relating to credit history / repayment record of the card holder to a credit information company (specifically authorized by RBI), the bank/NBFC may explicitly bring to the notice of the customer that such information is being provided in terms of the Credit Information Companies (Regulation) Act, 2005.
c. Before reporting default status of a credit card holder to the Credit Information Bureau of India Ltd. (CIBIL) or any other credit information Company authorized by RBI, banks/NBFCs should ensure that they adhere to a procedure, duly approved by their Board, including issuing of sufficient notice to such card holder about the intention to report him/ her as defaulter to the Credit Information Company.

1.4 Fair Practices Code

Such of the banks which have subscribed to the BCSBI Code may incorporate the principles contained in BCSBI Code for evolving their Fair Practices Code for credit card operations, in lieu of IBA Fair Pratices Code for credit card operations. The banks’ Fair Practices Code, should at a minimum, incorporate the relevant guidelines contained in this Master Circular. Banks/NBFCs should also widely disseminate the contents of this Master Circular, including through their websites.

Attached File : 117302247 rbi mastercircular.pdf downloaded: 184 times
1 Like

jyaky petter ( company)     21 April 2012



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