PRECAUTIONS TO BE ADOPTED WHILE DISCLOSING THE INFORMATION

PRECAUTIONS TO BE ADOPTED WHILE DISCLOSING THE INFORMATION

Banker should adopt proper precaution while disclosing the financial status or any other information of his customers. Undue or irrelevant information can, not only make the banker liable for compensation but also the third party who makes use of such information may suffer loss. It is, therefore, necessary to note the following points

1. Only facts should be revealed: Only such facts as are evident from the customer’s account to be revealed. In other words, the disclosure should not be based on rumours.

2. It should be a statement in general: The banker should give the information about the customer’s financial position in a general form. Terms commonly used and understood in the banking fraternity like ‘ordinary’, ‘fair’, ‘good’, ‘excellent’, ‘unsatisfactory’, ‘in the ordinary course of business’, etc., may be used for describing the means, credit of a customer:

3. Secrecy should be maintained by the recipient also: The banker should clearly state while giving the information that the recipient should maintain absolute secrecy of information furnished.

4. Disclosure of secrecy: It is the practice among bankers to state while sharing information about customers with other bankers that the information was being furnished in strict secrecy and that the banker giving the information was not responsible and would not be liable for the information so given and further that the recipient authority should also treat it as confidential.

5. Information should not be given to persons out of context and without proper justification: If a person who is not at all directly concerned with a customer of the bank, asks for information about the customer’s account, the request from such a person is out of context and hence the banker should not make disclosure.