The Public Financial Institutions (Obligation as to Fidelity and Secrecy) Act has been incorporated on 30th December 1983. This Act has been established to bestow for the commitment of public financial institution as to fidelity and secrecy.
The Public Financial Institution shall not reveal or divulge any confidential informations of any affairs or its Constituents except that are provided under Sub-Section (2) of this Act. This institution shall not delegate any informations unless it is customary or provided in any laws in force for the wellbeing of this institutions.
This Institution for efficient discharge of duties shall delegate certain informations to the Central Government, State bank of India constituted under Section 3 of the State Bank of India Act, 1955 and such other banks as prescribed by this Act under several related Acts, to other Public Financial Institutions with regard to credit informations and such other informations as prescribed by this Act in such manner as it deems fit.
As far as the declaration of fidelity and secrecy is concern, every member of any Committee, Auditor or any other officers of the Public Financial Institution shall on entering into their duties shall make a declaration on fidelity and secrecy within thirty days from the date of commencement of this Act. Here no Officers shall disclose any confidential informations unless it is necessary for the benefit of such Institution as prescribed in this Act. This Declaration shall be in the mode of a Form sets wherein he take a declaration in writing. This make them bound under the Act, for non-disclosue of confidentiality informations.
As far as repealing clause is concerned, there were several provisions of several Acts have been repealed and amended. Amendment of Act 15 of 1948, Amendment of Act 63 of 1951, etc, where clear cut examples. This Repealing clause is followed by the Schedule for Declaration of Fidelity and Secrecy.
This Act clearly shows the responsibility of the every Officer of the Public Financial Institutions, through the Central Government Act by providing a separate Act for declaration of Fidelity and Secrecy in Public Financial Institutions with proper schedule for the same.
by C.Srivenkatesh Prabhu.