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  • Category: General

    Do banks get to know the other bank details of their customers?

    Banks these days operate on core banking module. All the transactions and dealings are centralised and as such you can access your accounts in any part of the nation. Also they have a couple of our documents like Aadhar or PAN card.
    So I was curious to know whether they can get to know our accounts in banks other than their own? With credit score playing an important role in lending decisions by the banks, do they check on our assets and liabilities in other banks as well in addition to what we have let them know?
  • #22975
    Yes they do.

    Core banking features pretty much open every small detail of our banking. Also the companies who do background check and the credit score check can dig for information even more than that.

    For example, recently one of my friend switched company. The background check people managed to get information of his bank account, previous salary changes, expenses paid, and even information like that friend started his own startup with their own DIN name while they had LLP setup.

    Too much information is accessible to any random person. And we have no control over that. I wish we could have some sort of control who can check our personal information.

  • #22977
    That was indeed a great piece of Information, Mahesh. So, the banks can check on the information on our other accounts maintained in different banks.

    That was in fact a very much needed info for me, as I am taking on my current home loan provider bank on rate of interest.

    Live....and Let Live!

  • #22978
    Normal employee of bank may not access that information from other banks legally (or say on paper).

    However if given task like acquiring credit score and other financial background check for home loan or such. In such case loan department can check out other bank accounts if need be. Initial check however are going to be related to salary and other financial assets before they can other bank accounts.

  • #22982
    I would say that it would have been great to ask this thing in our Ask Expert section as I feel that there is nothing to discuss in this the answer would be either Yes or No. So it would have been better explained in our Ask Expert section by the respected experts. Though yes, banks get to know the other bank details of their customers. They do have contacts with the other banks.
    Regards,
    Aman

    I find that the harder I work, the more luck I seem to have.

  • #22985
    @Aman, I do not want a answer in the way an AE response provides. I want a healthy discussion on this. And sorry to let you know that I am talking about the technological aspect of core banking by which banks get information about different accounts held by their customers including their liabilities. The man to man contacts have nothing to do with this discussion.

    And please note that a Yes or No does not end this discussion. Please note the response by Mahesh which comes with many insights into the information I have been seeking. Vague responses do not mean anything.

    Live....and Let Live!

  • #22986

    Regards,
    Aman

    I find that the harder I work, the more luck I seem to have.

  • #22995
    I am not sure of this, but I have heard that each bank also has a list of defaulters which can be accessed by other banks. It could be a default on a loan or of a credit card or even of not maintaining the minimum balance required for an account, etc. That way, they will be wary of giving a loan or issuing a credit card to such defaulters.

    There are also likely RBI policies in place as to what is the extent to which data of a customer is available to other banks in terms of technological access as well as via direct contact with the seniormost officers of the customer's Bank.

    Regards,
    Vandana

  • #23003
    My grudge with my current bank is that in spite of recent rate cuts by RBI, they are not reducing the interest rate for my home loan. I have, in fact, moved all my transactions to a different bank - keeping just the home loan and a nominal account with that bank. I would want to know whether my home lender will get to know about my other account.

    Actually, I WANT THEM TO KNOW!

    Live....and Let Live!


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