Reserve Bank of India Act, 1934 | Chapter IIIA

Sections 45D and 45E: Credit Information and Confidentiality under the RBI Act

Sections 45D and 45E of the Reserve Bank of India Act, 1934 govern how a banking company can obtain credit information from the Reserve Bank of India (RBI), and the confidentiality obligations and limited exceptions applying to that information. Both provisions belong to Chapter IIIA, which deals with collection and furnishing of credit information.

Section 45D: Procedure for furnishing credit information to banking companies

Meaning and scope. Section 45D enables a banking company to apply to the RBI for specified credit information concerning a person with whom the bank has entered into, or proposes to enter into, a financial arrangement. This is a statutory mechanism for bank-to-RBI requests, not a general public right to demand a person's banking records.

Application - subsection (1): The applicant banking company may request particular credit information in the form specified by the RBI, in connection with an existing or proposed financial arrangement.
Response - subsection (2): The RBI must furnish, as soon as may be, relevant information in its possession, but must not identify the banking companies that supplied the underlying information.
Fee - subsection (3): The RBI may charge a fee for each application, capped by the statutory text at Rs. 25.

Section 45E: Disclosure of information prohibited

Meaning and scope. Credit information in statements supplied under Section 45C, or furnished under Section 45D, is confidential. Section 45E restricts publication and disclosure except for Chapter IIIA purposes and expressly recognised exceptions.

Exceptions to the restriction under Section 45E(2)

Prior RBI permission: A banking company may disclose information it furnished under Section 45C with the RBI's prior permission.
Consolidated public-interest publication: The RBI may publish aggregated information in the public interest without naming banks or borrowers.
Banking practice and other laws: Certain bank-to-bank disclosures, customary banking practices and disclosures permitted or required by other laws are preserved, subject to the proviso on further publication.
Credit information companies: Disclosures made under the Credit Information Companies (Regulation) Act, 2005 are expressly excepted.

Protection from compelled production - Section 45E(3): The provision restricts courts, tribunals and other authorities from compelling production or inspection of statements furnished under Section 45C or disclosure of credit information furnished under Section 45D. Its specific statutory scope should not be confused with a blanket prohibition covering every banking record or every disclosure under other laws.

Sections 45D and 45E: Complete provisions

The following provisions reproduce the substantive text retained from the original page, organised by subsection.

Section 45D of RBI Act 1934 : "Procedure for furnishing credit information to 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 form 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.

Section 45E of RBI Act 1934: "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 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 Bank under section 45C;

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

(c) the disclosure or publication by the banking company or by the Bank of any credit information to any other banking company or in accordance with the practice and usage customary among bankers or as permitted or required under any other law:

Provided that any credit information received by a banking company under this clause shall not be published except in accordance with the practice and usage customary among bankers or as permitted or required under any other law.

(d) the disclosures of any credit information under the Credit Information Companies (Regulation) Act, 2005 (30 of 2005).

(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 or to disclose any credit information furnished by the Bank to that banking company under section 45D.

How Sections 45C, 45D and 45E work together

Section 45C authorises the RBI to require credit-information statements from banking companies; Section 45D regulates furnishing that information to applicant banks; Section 45E protects its confidentiality and identifies exceptions. The expression credit information is defined in Section 45A and includes information about loans, advances, security, guarantees, financial history and creditworthiness.

Official legal sources

For interpretation or proceedings, consult the current official statutory text, relevant rules, RBI directions and applicable judicial decisions.