When we go to a bank (or insurance company) they ask about our dealings/accounts/policies with other bank (or insurance company). As a citizen why cannot I refuse to reveal the details as it is a matter of my privacy as to which other banks (or inusrance companies) I am dealing with? Why do banks/insurance companies have upper hand in the deal that they can ask me whatever they like?
2 Answers from Attorneys
India presently does not have any express legislation governing data protection or privacy. However, the relevant laws in India dealing with data protection are the Information Technology Act, 2000 and the (Indian) Contract Act, 1872. A codified law on the subject of data protection is likely to be introduced in India in the near future.
It is to be noted that section 69 of the Act, which is an exception to the general rule of
maintenance of privacy and secrecy of the information, provides that where the Government is
satisfied that it is necessary in the interest of:
the sovereignty or integrity of India,
defence of India,
security of the State,
friendly relations with foreign States or
public order or
for preventing incitement to the commission of any cognizable offence relating to
As can be observed this is a very wide list or areas where privacy can be encroached upon by anyone. Since prevention fo incitement to the commission of any cognizable offence is listed above, bank may ask you to disclose your dealings with any other banks or institutions to protect their interests.
Please feel free to contact me for any clarification.
MUKESH RALHAN, ADVOCATE
Dear Sir / Madam,
There are many instances of loans granted by banks having gone bad due to the borrower having borrowed money from two or more institutions. It is to prevent this lapse why banks insist on the borrower to furnish all the details on other a/cs and policies held.
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