The Public Financial Institutions (Obligation as to Fidelity and Secrecy) Act, 1983

This Act may be called the Public Financial Institutions (Obligation as to Fidelity andSecrecy) Act, 1983.

(1) In this Act, "public financial institution" means-- (a) the Industrial Credit and Investment Corporation of India Limited, a company formed andregistered under the Indian Companies Act, 1913(7 of 1913); (b) the Industrial Reconstruction Corporation of India Limited, a company formed and registeredunder the Companies Act, 1956(1 of 1956); or (c) any other institution, being a company as defined in section 617 of the Companies Act,1956(1 of 1956) or a company to which the provisions of section 619 of that Act apply, which theCentral 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 ofthis Act. (2) Every notification issued under clause (c) of sub-section (1) shall, as soon as may be, after it isissued, be laid before each House of Parliament.

(1) A public financial institution shall not, except asotherwise provided in sub-section (2) or in any other law for the time being in force, divulge anyinformation relating to, or to the affairs of, its constituents except in circumstances in which it is, inaccordance with the law or practice and usage, customary among bankers, necessary or appropriate forthe public financial institution to divulge such information. (2) A public financial institution may, for the purpose of efficient discharge of its functions, collectfrom, 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(23 of1955), any subsidiary bank within the meaning of the State Bank of India (Subsidiary Banks) Act,1959(38 of 1959), any corresponding new bank constituted under section 3 of the BankingCompanies (Acquisition and Transfer of Undertakings) Act, 1970(5 of 1970) or under section 3 of theBanking Companies (Acquisition and Transfer of Undertakings) Act, 1980 (40 of 1980), any otherscheduled bank within the meaning of the Reserve Bank of India Act, 1934(2 of 1934); or (c) any other public financial institution, such credit information or other information as it may consider useful for the purpose, in such manner andat such time as it may think fit. Explanation.--For the purposes of this sub-section, the expression "credit information" shall have thesame meaning as in clause (c) of section 45A of the Reserve Bank of India Act, 1934 (2 of 1934) subjectto the modification 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. 1[(3) Nothing contained in this section shall apply to the credit information disclosed under the CreditInformation Companies (Regulation) Act, 2005 (30 of 2005).]

Every director, member of any committee, auditor orofficer or any other employee of a public financial institution to which this Act applies, shall,-- (a) before entering upon his duties; or (b) where he has entered upon his duties as such before the date on which this Act becameapplicable to such institution, within thirty days from the date on which this Act became applicable tosuch institution, make a declaration of fidelity and secrecy in the form set out in the Schedule to this Act.

[Amendment of Act 15 of 1948.] Rep. by the Repealing and Amending Act, 1988 (19 of 1988), s. 2 and theFirst Schedule (w.e.f. 31-3-1988).