Case Law against Bank Secrecy

1054 Words Jan 30th, 2018 4 Pages
Bank secrecy is desirable. If the details of the accounts of the customer are revealed, then the financial position of the customer will be known to others it may adversely affect the reputation of the customer.
However, bank secrecy has to be maintained at an optimal level. Confidentiality or secrecy as the state of having the dissemination of certain information restricted. In India, there has been growing awareness about confidentiality in recent years. The tort of breach of confidentiality in India is based upon the violation of right to privacy .There are some cases that are occurred in Indian’s banking field which against bank secrecy.

 Shankar Lal Agarwalla v. State Bank of India
This case is important for state qualifications on the duty of the banker to observe the secrecy of the account of the customer and thereby limiting the legal duty of the banker. In this case an ordinance instituted on January 16, 1978 provided for demonetization of notes of Rs. 1000 and above. On January 19, 1978, the petitioner deposited certain currency notes of the denomination of Rs. 1000 each, amounting to Rs. 2, 61,000. This amount had been deposited, along with the declaration form under the said Act, for exchange; with the exchange value was to be credited to the account of the petitioner. What the bank did however was to…
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