Bankers’ Books Evidence Act, 2026 to come into force from October 1
The Bankers’ Books Evidence Act, 2026 will replace the 1891 law from October 1, recognising electronic, digital, cloud-based and other contemporary banking records as evidence.
The new legislation recognises banking records maintained in a range of formats, including physical, electronic, digital, virtual and cloud-based records, as well as other contemporary forms.
NEW DELHI: The Bankers’ Books Evidence Act, 2026 will come into force from October 1, 2026, replacing the Bankers’ Books Evidence Act, 1891 and introducing a technology-neutral framework for the use of banking records as evidence in legal proceedings.
The Ministry of Finance said the Act received the President’s assent on August 13, 2026. A notification dated September 10, 2026 has appointed October 1 as the date on which its provisions will come into force.
Banking records in digital age
The new legislation recognises banking records maintained in a range of formats, including physical, electronic, digital, virtual and cloud-based records, as well as other contemporary forms.
The framework is intended to keep the legal treatment of banking records aligned with rapidly evolving banking practices and technology.
The Act also introduces a simplified and standardised system for certifying banking records. Certification can be carried out through manual, digital or electronic signatures, facilitating the use of such records in court proceedings.
Clarity on summoning bank officials
The legislation provides greater clarity on the circumstances in which bank officials may be summoned when the bank itself is not a party to the proceedings.
In such cases, the Court will have to record a “special cause” in writing for summoning the bank official.
The Act also empowers the Central Government to extend its provisions to specified financial sector entities or classes of entities. This provision is aimed at allowing the legal framework to adapt to changes in the financial sector.
Focus on ease of doing business
The government said the reforms are part of its broader efforts to modernise the legal and regulatory framework governing the banking and financial sector.
By replacing the 1891 legislation with a technology-neutral framework, the new Act seeks to align the use of banking evidence with contemporary practices while simplifying certification requirements and strengthening the efficiency of legal proceedings.
Gazette notification
The Gazette notification dated September 10, 2026 is available through the official e-Gazette portal:
Gazette Notification – e-Gazette of India
Gazette Notification – e-Gazette of India (alternative link)
