New Delhi: The Bankers’ Books Evidence Act, 2026 will come into force from October 1, replacing the 1891 law and ushering in a technology-neutral framework for using banking records as evidence in legal proceedings.
The new legislation, which received the President’s assent on August 13, aims to bring the legal framework governing banking records in line with modern banking practices and technological advancements.
Under the new Act, banking records maintained in physical, electronic, digital, virtual, cloud-based and other contemporary formats will be recognised. This is expected to provide greater legal clarity as banks increasingly rely on digital systems for maintaining and processing records.
The Act also simplifies and standardises the certification of banking records. Such certification can now be carried out through manual, digital or electronic signatures, making it easier to produce bank records during court proceedings.
The government said the changes are aimed at modernising the legal framework and promoting ease of doing business in the financial sector.
The legislation also provides greater clarity on the circumstances in which bank officials can be summoned when the bank itself is not a party to a legal proceeding.
In such cases, the court will have to record a “special cause” in writing before summoning a bank official. The provision is intended to bring greater procedural clarity while avoiding unnecessary involvement of banking personnel in legal proceedings.
The Act also gives the Central Government the power to extend its provisions to specified financial sector entities or classes of entities. This provision allows the legal framework to adapt to changes in the financial sector and emerging forms of financial institutions.
The notification issued on September 10 appointed October 1, 2026, as the date for the Act to come into force.
The government said the reforms are part of its broader efforts to modernise laws in line with technological developments, strengthen the financial system and improve the ease of doing business.
