Section 34A of Banking Regulation Act - Protection of documents of confidential nature

Section 34A of Banking Regulation Act 1949: Protection of documents of confidential nature

(1) Notwithstanding anything contained in section 11 of the Industrial Disputes Act, 1947 (14 of 1947), or any other law for the time being in force, no banking company shall, in any proceeding under the said Act or in any appeal or other proceeding arising therefrom or connected therewith, be compelled by any authority before which such proceeding is pending to produce, or give inspection of, any of its books of account or other document or furnish or disclose any statement or information, when the banking company claims that such document, statement or information is of a confidential nature and that the production or inspection of such document or the furnishing or disclosure of such statement or information would involve disclosure of information relating to-

(a) any reserves not shown as such in its published balance-sheet; or

(b) any particulars not shown therein in respect of provisions made for bad and doubtful debts and other usual or necessary provisions.

(2) If, in any such proceeding in relation to any banking company other than the Reserve Bank of India, any question arises as to whether any amount out of the reserves or provisions referred to in sub-section (1) should be taken into account by the authority before which such proceeding is pending, the authority may, if it so thinks fit, refer the question to the Reserve Bank and the Reserve Bank shall, after taking into account principles of sound banking and all relevant circumstances concerning the banking company, furnish to the authority a certificate stating that the authority shall not take into account any amount as such reserves and provisions of the banking company or may take them into account only to the extent of the amount specified by it in the certificate, and the certificate of the Reserve Bank on such question shall be final and shall not be called in question in any such proceeding.

1[(3) For the purposes of this section "banking company" includes the Reserve Bank, 2*** the Exim Bank, 3[the Reconstruction Bank], 4[the National Housing Bank], the National Bank, 5[, the Small Industries Bank], the State Bank of India, a corresponding new bank, a regional rural bank and a subsidiary bank.]

 

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1. Subs. by Act 1 of 1984, s. 28, for sub-section (3) (w.e.f. 15-2-1984)

2. The words "the Development Bank" omitted by Act 53 of 2003, s. 12 and the Schedule (w.e.f. 2-7-2004)

3. Ins. by Act 62 of 1984, s. 71 and the Third Schedule (w.e.f. 20-3-1985)

4. Ins. by Act 53 of 1987, s. 56 and the Second Schedule (w.e.f. 9-7-1988)

5. Ins. by Act 39 of 1989, s. 53 and the Second Schedule (w.e.f. 7-3-1990)