HC asks IBA to ensure banks follow SOPs

The Delhi High Court has asked the Indian Banks Association (IBA) to hold a meeting of all its members to ensure that everyone follows the standard operating procedures (SOP) related to information disclosure mechanisms to law enforcement agencies.

“It appears that the SOP (standard operating procedures) and the manner in which the SOPs have to be implemented by all the banks is still a work in progress. Let the IBA hold the meeting of the concerned sub-groups and sub-committee in order to ensure that all banks follow the SOP in respect of information disclosure mechanism to the law enforcement agencies,” Justice Prathiba M. Singh said.

The court also issued notice to Srinivasarao, senior advisor, IBA, and asked him to be present before it so that the stand of all the banks can be considered on April 6, the next date of hearing.

The directions came pursuant to the Reserve Bank of India informing the court that detailed SOPs had been prepared for exchange of information between banks and law enforcement agencies and the deadlines for banks to provide information have been fixed strictly and the same have to be mandatorily complied with by all.