New Delhi: A new legal framework governing the use of banking records as evidence will come into force from October 1, 2026, with the Bankers’ Books Evidence Act, 2026 replacing the century-old Bankers’ Books Evidence Act, 1891.
The new legislation received the President’s assent on August 13, 2026, while a notification issued on September 10 appointed October 1 as the date for its implementation.
The legislation updates the evidentiary framework to reflect changes in banking technology and record-keeping practices.
Digital and Cloud-Based Banking Records Recognised
The Act adopts a technology-neutral approach and recognises banking records maintained in a range of formats.
These include:
- Physical records
- Electronic records
- Digital records
- Virtual records
- Cloud-based records
- Other contemporary forms of banking records
This provides a statutory framework for banking records maintained through modern digital systems to be used in legal proceedings.
Certification Process to Be Standardised
The Act also introduces a simplified and standardised approach to the certification of banking records.
Certification can be carried out through:
- Manual signatures
- Digital signatures
- Electronic signatures
The provision is intended to establish a uniform framework for certifying banking records when they are produced as evidence.
Courts Get Clearer Framework for Summoning Bank Officials
The new law also sets out greater clarity on when bank officials can be summoned in proceedings where the bank itself is not a party.
Under the Act, a court must record “special cause” in writing before summoning such officials.
The provision establishes an additional procedural requirement for requiring bank officials to appear in cases involving banking records.
Framework Can Extend to Other Financial Entities
The legislation also gives the Central Government the power to extend its provisions to specified financial-sector entities or classes of entities.
This allows the framework to be applied to other parts of the financial sector as the nature of financial services and record-keeping evolves.
The Bankers’ Books Evidence Act, 2026 is therefore set to replace the 1891 framework with provisions covering contemporary forms of banking records, standardised certification and procedures relating to bank officials in legal proceedings.
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