The Bankers’ Books Evidence Act, 2026 will come into force from October 1, 2026, replacing the 1891 law and providing a modern legal framework for the use of banking records as evidence in legal proceedings.
The new legislation received the assent of President Droupadi Murmu on August 13, 2026. The Central Government, through a notification issued on September 10, appointed October 1 as the date for commencement of the Act.
The Act seeks to modernise the legal framework governing banking records in line with rapid changes in banking practices and technology. It adopts a technology-neutral approach, recognising banking records maintained in physical, electronic, digital, virtual, cloud-based and other contemporary forms.
A key provision of the new law is the simplification and standardisation of certification of banking records. Such certification can be carried out through manual, digital or electronic signatures, facilitating the use of banking records in judicial and other legal proceedings.
The legislation also provides greater clarity regarding the summoning of bank officials when the bank is not a party to the proceedings. Under the new framework, a court will be required to record a “special cause” in writing before summoning such officials.
The Act further empowers the Central Government to extend its provisions to specified financial sector entities or classes of entities, enabling the legal framework to adapt to developments in the wider financial sector.
The new legislation is part of the Government’s broader efforts to modernise laws governing the banking and financial sector, promote ease of doing business and strengthen the legal and regulatory framework in response to technological and economic changes.
