Section 109
Banking Secrecy To Be Maintained
(1) The relationship between a bank or financial institution and its customers and information pertaining to his or her accounts, records, books, ledgers and statements shall not be disclosed to any person other than the concerned person.
(2) Notwithstanding anything contained in Sub-Section (1), secrecy shall not be deemed to have been violated, if the details or information of any person remained in a bank or financial institution is provided in following manner: –
a. If the details or information provided to the Rastra Bank pursuant to this Act or Rastra Bank Act or the Rules or Byelaws framed thereunder or the orders or directives issued thereunder or if the details or information is shared between banks or financial institutions in the course of exchanging credit information,
b. If the details or information is provided to the court in connection with any litigation or any other legal action,
c. If such notice or information is provided to any Committee of Inquiry carrying out investigations or prosecution, or inquiry according to the prevailing laws or to any other competent person authorized by the prevailing laws, or such information is provided to any regulatory entity.
d. If any detail or information is provided to an auditor in the course of auditing,
e. If any detail or information is provided to a foreign country in accordance with the prevailing laws relating to mutual legal assistance,
f. If, in the course of investigation of any case of a specific nature, the Government of Nepal, Ministry of Finance, has made a request, accompanied by the reason therefor, for providing any details of the account of any person, firm, company or institution maintained with the bank or financial institution, and if the Rastra Bank has given direction according for the same.
(3) No one shall disclose or cause to be disclosed any information or details received under Sub – Section (2) to any unauthorized person.
(4) Except in the circumstance as referred in Sub-Section (2), the Director, Chief Executive, office bearer, employee, auditor, advisor of a bank or financial institution or any other relevant person shall not disclose or cause to be disclosed the secrecy of the accounts, records, books, ledgers and any other information of the bank or financial institution the secrecy of which is required to be maintained in such a manner as to undermine the relationship between the bank or financial institution and its customers.
(2) Notwithstanding anything contained in Sub-Section (1), secrecy shall not be deemed to have been violated, if the details or information of any person remained in a bank or financial institution is provided in following manner: –
a. If the details or information provided to the Rastra Bank pursuant to this Act or Rastra Bank Act or the Rules or Byelaws framed thereunder or the orders or directives issued thereunder or if the details or information is shared between banks or financial institutions in the course of exchanging credit information,
b. If the details or information is provided to the court in connection with any litigation or any other legal action,
c. If such notice or information is provided to any Committee of Inquiry carrying out investigations or prosecution, or inquiry according to the prevailing laws or to any other competent person authorized by the prevailing laws, or such information is provided to any regulatory entity.
d. If any detail or information is provided to an auditor in the course of auditing,
e. If any detail or information is provided to a foreign country in accordance with the prevailing laws relating to mutual legal assistance,
f. If, in the course of investigation of any case of a specific nature, the Government of Nepal, Ministry of Finance, has made a request, accompanied by the reason therefor, for providing any details of the account of any person, firm, company or institution maintained with the bank or financial institution, and if the Rastra Bank has given direction according for the same.
(3) No one shall disclose or cause to be disclosed any information or details received under Sub – Section (2) to any unauthorized person.
(4) Except in the circumstance as referred in Sub-Section (2), the Director, Chief Executive, office bearer, employee, auditor, advisor of a bank or financial institution or any other relevant person shall not disclose or cause to be disclosed the secrecy of the accounts, records, books, ledgers and any other information of the bank or financial institution the secrecy of which is required to be maintained in such a manner as to undermine the relationship between the bank or financial institution and its customers.