Bankers have a duty of secrecy to keep their customers' affairs confidential, even after an account is closed or the customer passes away. This duty is a legal obligation, and breaching it could result in damages. There are some exceptions to this duty of secrecy, including when disclosure is compelled by law, such as responding to a court summons. Disclosure may also be allowed where there is a duty to the public or where the bank's interests require it, such as informing a guarantor when trying to recover debts. Disclosure with a customer's express or implied consent is also permitted.

1. 1
Banker’s Duty of Secrecy
One of the implied terms of contract
– obliged to keep the affairs of his
customer secret – even after the a/c
is closed & extends after customer’s
death. Duty is legal one, not merely
moral – breach of it would result in
damages – nominal or substantial.

2. 2
Exception To Duty of Secrecy
A.Disclosure is under compulsion of law.
B.Where there is a duty to the public to
disclose.
C.Where the interest of bank requires
disclosure.
D.Where the disclosure is made by
express or implied consent of the
customer.

3. 3
A. Disclosure under compulsion of law.
i. Under Banker’s Books Evidence Act 1891.
ii. Summons by civil & criminal courts to
produce Documents / Tender oral Evidence
& Notices by Public officials for production
of Documents.
iii.Under Income Tax Act 1961.
iv. Under other statutor
(a) Companies Act (b) Gift tax Act
(c )Estate Duty Act (d)Wealth Tax Act
(e) RBA Act 1934 (f) BRA 1949

4. 4
B. Where there is a Duty to the Public to disclose
No case in this regard. Not to be taken lightly.
C. Where the Interest of bank requires disclosure
To the guarantor when banker wishes to recover his dues.
D. Disclosure by Express or Implied Consent of
Customer
In writing from customer
E. Inquires of other Banks
Established practice & implied consent of customer is
presumed.

5. 5
Mr.B.J.Ved

6. 5
Mr.B.J.Ved