New Delhi: The Bankers’ Books Evidence Act, 2026 will come into force from October 1, 2026. The new law will replace the 1891 Act and modernise rules for using banking records as evidence.
The government notified October 1 as the commencement date through a Gazette notification issued on September 10, 2026. President Droupadi Murmu had given assent to the new Act on August 13, 2026.
The Bankers’ Books Evidence Act, 2026 updates the legal framework to match changes in banking practices and technology. It also aims to support ease of doing business and improve the legal process involving banking records.
The law takes a technology-neutral approach to banking records. It recognises records kept in physical, electronic, digital, virtual, cloud-based and other modern formats.
It also simplifies and standardises the certification of banking records. The certification can use manual, digital or electronic signatures.
These provisions will make it easier to use banking records in legal proceedings. They also bring the legal framework closer to current banking systems and record-keeping practices.
Bankers’ Books Evidence Act sets clearer rules for courts
The Bankers’ Books Evidence Act also provides greater clarity on when courts can summon bank officials. If a bank is not a party to proceedings, the court must record a “special cause” in writing before summoning its officials.
The new framework also allows the Central Government to extend its provisions to specified financial sector entities. It can also apply the rules to specified classes of such entities.
This provision allows the legal framework to respond to changes in the financial sector. It also provides scope to cover new types of financial institutions as the sector evolves.
The government said the reforms were part of its broader efforts to modernise banking and financial sector laws. These efforts seek to align legal rules with technological advances and changing economic needs.
The new law replaces legislation enacted in 1891. Its provisions now recognise the wide range of formats used to maintain banking records.
The Bankers’ Books Evidence Act, 2026 also seeks to create a more efficient process for presenting such records in legal proceedings. Standardised certification is expected to support that process.
The government said the reforms would strengthen the modern financial system. It also linked the changes with easier business operations and a more efficient legal and regulatory framework.
