Schedule 3 of The Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970
THE THIRD SCHEDULE [See sub-sections (2) and (3) of section 13] DECLARATION OF FIDELITY AND SECRECY
| I,-----------, do hereby declare that I will faithfully, truly and to the best of my skill and ability execute and perform the duties required of me as Custodian, Director, member of Local Board, member of Local Committee, auditor, adviser, officer or other employee (as the case may be) of the | and which properly relate to the office or position in the said held by me. |
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| I further declare that I will not communicate or allow to be communicated to any person not legally entitled thereto any information relating to the affairs of the | or to the affairs of any person having any dealing with the ;nor will I allow any such person to inspect or have access to any books or documents belonging to or in possession of the* and relating to the business of the* or to the business of any person having any dealing with the* |
Name of corresponding new bank to be filled in. 24
Summary
- Corresponding new banks are legally required to observe the practices and usages customary among bankers, especially the obligation to keep customer affairs and information secret.
- No customer information may be divulged unless it is required by law or matches customary banking practices and usages.
- All directors, local board or committee members, auditors, advisers, officers, and other employees must sign a formal declaration of fidelity and secrecy before starting their work.
- The Custodian of the corresponding new bank is also required to make this secrecy declaration as soon as possible after taking charge.
- The official declaration text in Schedule 3 binds the signer to execute their duties faithfully, protect bank and customer data, and prevent unauthorized inspection of bank books and documents.
Practical examples
FAQ
1. Who is required to sign the declaration of fidelity and secrecy?
Every Custodian, director, local board or committee member, auditor, adviser, officer, and employee of a corresponding new bank must sign the declaration set out in Schedule 3.
2. When must the declaration of fidelity and secrecy be made?
For directors, local board or committee members, auditors, advisers, officers, or other employees, it must be signed before they enter upon their duties. For the Custodian, it must be signed as soon as possible after taking office.
3. Are there any situations where a corresponding new bank is allowed to disclose customer information?
Yes, a bank may disclose information if it is required to do so by law, or if the disclosure is necessary or appropriate in accordance with customary banking practices and usages.
Test yourself
Q1.Under Section 13 and Schedule 3 of The Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, when must a newly appointed auditor of a corresponding new bank make the declaration of fidelity and secrecy?
Q2.Under Section 13 and Schedule 3 of The Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, who among the following is required to sign the declaration of secrecy as soon as possible, rather than strictly before entering upon their duties?
Q3.Under Section 13 of The Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, which of the following disclosures is explicitly carved out from the secrecy restrictions imposed by this section?
Q4.Under Schedule 3 of The Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, what does a person signing the declaration of fidelity and secrecy specifically swear or declare?