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Bare acts > State Financial Corporations Act, 1951 > Section 40


40. Declaration of fidelity and secrecy.- (1) The Financial Corporation shall not, except as otherwise required by this Act or any other law for the time being in force, divulge any information relating to, or to the affairs of, its constituents except in circumstances in which it is, in accordance with the law or practice and usage, customary among bankers, necessary or appropriate for the Financial Corporation to divulge such information.

*[(2) The Financial Corporation may, for the purpose of efficient discharge of its functions under this Act, collect from, or furnish to--

(a) the Central Government;

(b) the State Bank of India constituted under Section 3 of the State Bank of India Act, 1955 (23 of 1955), any subsidiary bank within the meaning of the State Bank of India (Subsidiary Banks) Act, 1959 (38 of 1959), any corresponding new bank constituted under Section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 (5 of 1970) or under Section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980 (40 of 1980) any other scheduled bank, any *[State Co-operative Bank, the Small Industries Bank or the Development Bank],
such credit information or other information as it may consider useful for the purpose, in such manner and at such time as it may think fit,

Explanation.--For the purposes of this sub-section, the expression "credit information" shall have the same meaning as in Clause (c) of Section 45A of the Reserve Bank of India Act, 1934 (2 of 1934) subject to the modification that the banking company referred to therein shall mean a bank referred to in Clause (b) of this sub-section.]

(3) Every director, auditor, officer or other employee of the Financial Corporation shall, before entering upon his duties, make a declaration of fidelity and secrecy in the form set out in the Schedule.

*[(4) Nothing contained in this section shall apply to the credit information disclosed under the Credit Information Companies (Regulation) Act, 2005.]
*[Subsection (2) was modified vide State Financial Corporations Amendment Act, 2000, section 29 and sub-section (4) was inserted vide Credit Information (Regulation) Act, 2005]





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