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Section 6   [ View Judgements ]

Insertion of new Chapter IIIA


In the principal Act, after Chapter III, the following Chapter shall be inserted namely



"CHAPTER IIIA



COLLECTION AND FURNISHING OF CREDIT INFORMATION



45A.Definitions



In this Chapter , unless the context otherwise requires



(a) "banking company" means a banking company as defined in section 5 of the Banking Companies Act, 1949 , and includes the State Bank of India or any other banking or financial institution notified by the Central Government in this behalf;



(b) "borrower" means any person to whom any credit limit has been sanctioned by any banking company whether availed of or not, includes-



(i) in the case of a company or corporation its subsidiaries



(ii) in the case of a Hindu undivided family, any member thereof of any firm in which such member is a partner



(iii) in the case of a firm any partner thereof or any other firm in which such partner is a partner; and



(iv) in the case of an individual any firm in which such individuals is a partner;



(c) "credit information" means by information relating to-



(i) the amounts and the nature of loans or advances and other credit facilities granted by a banking company to any borrower or class of borrowers;



(ii) the nature of security taken from any borrower for credit facilities granted to him; and



(iii) the guarantee furnished by a banking company for any of its customers.



45B.Power of Bank of collect credit information The Bank may-(a)collect, in such manner as it may think fit, credit information from bankingcompanies; and



(b) furnish such information to any banking company in accordance with the provisions of section 45D.



45C.Power to call for returns containing credit information



(1) For the purpose of enabling the Bank of discharge its functions under this Chapter , it may at any time direct any banking company to submit to it such statements relating to such credit information and in such form and within time as may be specified by the Bank from time to time



(2) A banking company shall, notwithstanding anything to the contrary contained in any law for the time being in force or in any instrument regulating the constitution thereof or in any agreement executed by it, relating to the secrecy of its dealings with its constituents, be bound to comply with any direction issued under sub-section (1).



45D.Procedure for furnishing credit information of banking companies (1) A banking company may, in connection with any financial arrangement entered into or proposed to be entered into by it, with any person make an application to the Bank in such from as the Bank may specify requesting it to furnish the applicant with such credit information as may be specified in the application.



(2) On receipt of an application under sub-section (1), the Bank shall as soon as may be furnish the applicant with such credit information relating to the matters specified in the application, as may be in its possession:



Provided that the information so furnished shall not disclose the names of the banking companies which have submitted such information to the Bank.



(3) The Bank may in respect of each application levy such fees, not exceeding twenty-five rupees , as it may deem fit for furnishing credit information.



45E.Disclosure of information prohibited.(1) Any credit information contained in any statement submitted by a banking company under section 45C or furnished by the Bank of to any banking company under section 45D, shall be treated as confidential and shall not, except for the purposes of this Chapter, be published or otherwise disclosed.



(2) Nothing in this section shall apply to-



(a) the disclosure by any banking company with the previous permission of the Bank of any information furnished to the Banker under section 45C;



(b) the publication by the Bank if it considers necessary in the public interest so do, of any information collected by it under section 45C in such consolidated from as it may think fit without disclosing the name of any banking company or its borrowers.



(3) Notwithstanding anything contained in any law for the time being in force, no court, tribunal or other authority shall compel the Bank or any banking company to produce or to give inspection of any statement submitted by that banking company under section 45C to disclose any credit information furnished by the Bank to that banking company under section 45D.



45F.Certain claims for compensation barred No person shall have any right, whether in contract or otherwise, to any compensation for any loss incurred by reason of the operation of any of the provisions of this Chapter.



45G.Penalties.- (1) If any banking company-



(a) fails to submit any statement required under section 45C or submits under that section a statement which is false in any material particular; or



(b) fails to comply with any condition imposed under this Chapter;



every director or other officer of the company and every other person who is knowingly a party to the breach shall be punishable with fine which may extend to two thousand rupees.



(2) If any person discloses any credit information the disclosure of which is prohibited under section 45E, he shall be punishable with imprisonment which may extend to six months or with fine which may extend to one thousand rupees or with both"

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