New law replaces 1891 Act, recognises electronic, digital, cloud-based banking records
Ziraat Times Team Report
New Delhi, September 11: The Bankers’ Books Evidence Act, 2026 will come into force from October 1, 2026, replacing the Bankers’ Books Evidence Act, 1891 and introducing a modern legal framework for the use of banking records as evidence in legal proceedings.
The Ministry of Finance said the new legislation, which received the President’s assent on August 13, 2026, seeks to bring the legal framework governing banking records in line with contemporary banking practices and technological developments.
The Central Government, through a notification dated September 10, 2026, appointed October 1 as the date for commencement of the provisions of the Act.
A key feature of the new legislation is its technology-neutral approach. It recognises banking records maintained in physical, electronic, digital, virtual, cloud-based and other contemporary forms.
The Act also simplifies and standardises the certification of banking records for use in legal proceedings. Such certification may be carried out through manual, digital or electronic signatures.
The legislation further provides greater clarity on the circumstances in which bank officials may be summoned when the bank is not a party to legal proceedings. In such cases, the Court will have to record a “special cause” in writing for summoning the official.
The Central Government has also been empowered to extend the provisions of the Act to specified financial sector entities or classes of entities, enabling the framework to adapt to the evolving financial landscape.
The Government said the reforms are aimed at modernising the legal and regulatory framework in response to technological advancements, promoting ease of doing business and strengthening the efficiency of the financial system.
The Bankers’ Books Evidence Act, 2026 thus replaces a legal framework dating back more than 130 years with provisions designed to accommodate the increasingly digital nature of banking and financial records.
