The banker is therefore under an obligation to take utmost care in keeping secrecy about the account of his customers.
But a banker will be justified in disclosing information about his customers account on reasonable and proper occasions as stated below:
- Disclose of information required by lawA banker is under statutory obligation to disclose the information relating to his customers account when the law specifies required to do so.The banker would, therefore, be justified in disclosing information to meet the following statutory requirements:
- Under income tax act.
- Under the company acts.
- Disclose to police.
- Under the foreign exchange regulation act.
- Disclose permitted by the bankers practices and usagesThe practices and usages customary amongst bankers permit the disclose of certain information’s under the following circumstances:
- With express or implied consent of the customer: the will be justifiable in disclosing any information relating to his customers account with the letters consent. The consent of customers may be expressed or implied.
- To protect his own interest: the banker may disclose the state of his customers account in order to legally protect his own interest.
- Banker reference: banker follows the practice of making necessary esquires about the customers, their sureties or the acceptors of the bills from other bankers. This is an established practice amongst the banker and is justifiable on the ground that an implied consent of the customer is presumed to exist.
- Duty to public to disclose: banker may justified disclose any information relating to his customers account when it is his duty to public to disclose such information, such situation are:
- When a bank asked for information by govt. officially concerning the commission of a crime.
- Where the bank considered that the customer is involved in activities prejudicial to the interest of the country.
- Where the banks book reveal that the customer is contravening the provision of any law.
- Where sizable fund arc received from foreign countries by a constituent.