India (IN)

Jurisdiction Overview

360 *Are there criminal sanctions, custodial sentencing or any other statutory sanctions for breaches of banking secrecy? Unknown
 Data Date: 2017


The Global Forum reported in 2013: "[...] the Reserve Bank of India confirmed that the bankers’ obligation to maintain secrecy arises out of the contractual relationship between the banker and customer, and as such no information should be divulged to third parties except under circumstances which are well defined, such as: where disclosure is under compulsion of law; where there is a duty to the public to disclose; where interest of bank requires disclosure; and where the disclosure is made with the express or implied consent of the customer" (GF 2013: 88-89). While it seems secrecy is protected by contractual agreement, it is not clear whether no custodial sentence or statutory sanctions are imposed in case of its violation. In addition, it appears that there are statutory provisions: " 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 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 or appropriate for the public financial institution to divulge such information." (Public Financial Institutions Act of 1983). It is not clear what sanctions may be.
GF 2017 does not add any information in this regard (p. 90)

GF 2013: 88-89, GF 2017: 90