Section 22 of The Payment and Settlement Systems Act, 2007
- (1)A system provider shall not disclose to any other person the existence or contents of any document or part thereof or other information given to him by a system participant, except where such disclosure is required under the provisions of this Act or the disclosure is made with the express or implied consent of the system participant concerned or where such disclosure is in obedience to the orders passed by a court of competent jurisdiction or a statutory authority in exercise of the powers conferred by a statute.
- (2)The provisions of the Bankers’ Book Evidence Act, 1891(18 of 1991) shall apply in relation to the information or documents or other books in whatever form maintained by the system provider.
Summary
- System providers must keep all documents and information from participants confidential.
- Information cannot be shared unless the Act specifically requires it.
- Sharing is allowed if the participant gives express or implied consent.
- A provider must disclose information if ordered by a court or a statutory authority.
- The Bankers' Book Evidence Act, 1891, applies to the records kept by the system provider.
Practical examples
FAQ
1. Can a system provider ever share a participant's information?
Yes, if the Act requires it, if the participant consents, or if a court or statutory authority orders it.
2. Does a participant have to give written permission to share their info?
Consent can be either express (written/clear) or implied.
3. What legal rule applies to the books and documents maintained by a provider?
The provisions of the Bankers' Book Evidence Act, 1891, apply to these records.
Test yourself
Q1.Under Section 22 of The Payment and Settlement Systems Act, 2007, what is the general rule for a system provider regarding participant information?
Q2.Which of the following is a valid exception to the confidentiality rule in Section 22 of The Payment and Settlement Systems Act, 2007?
Q3.Under Section 22 of The Payment and Settlement Systems Act, 2007, a system provider must disclose information if ordered by which of the following?
Q4.According to Section 22 of The Payment and Settlement Systems Act, 2007, which 1891 law applies to the documents maintained by the system provider?