Bankers' Books Evidence Act, 2026 to come into force from Oct 1

New Delhi: The Finance Ministry has issued the notification for the Bankers’ Books Evidence Act, 2026 to come into force from October 1, 2026, according to an official statement issued on Friday.

The Act adopts a technology-neutral approach by recognising banking records maintained in physical, electronic, digital, virtual, cloud-based, and other contemporary forms. It also provides for simplified and standardised certification of banking records, including through manual, digital, or electronic signatures.

The Bankers’ Books Evidence Act, 2026, which received the assent of the President on August 13, replaces the Bankers’ Books Evidence Act, 1891, to provide for a modern framework for the use of banking records as evidence in line with contemporary banking practices.

Greater clarity has also been provided on the summoning of bank officials where the bank is not a party to the proceedings, with a "special cause" to be recorded in writing by the court for such summoning.

Further, the Central government may extend the provisions to specified financial sector entities or classes of entities, allowing the framework to cater to the evolving financial landscape.

The new Act expands the definition of "bankers’ books" to expressly include physical, electronic, digital, virtual, and cloud-based records, including those stored at back-up and disaster recovery sites, ensuring the law remains relevant as technology evolves. It also introduces a two-track certification framework, with separate certificates for physical and electronic records under the First and Second Schedules, authenticated either manually or through digital or electronic signatures recognised under the Information Technology Act, 2000.

Further, it expressly provides that electronic or digital bank records cannot be denied admissibility solely because they are in electronic form and prescribes detailed statutory safeguards to establish their authenticity, integrity, and cybersecurity. These technology-specific certification and authentication standards were absent under the 1891 Act.

The Bill defines "special cause" for the first time by clearly specifying the limited circumstances in which courts may require banks to produce records or bank officers to give evidence.

It also empowers the Central government to extend the legal framework governing bankers’ books, by notification, to other entities in the financial sector, ensuring the law remains relevant as the sector evolves.

The Bill introduces separate statutory certification mechanisms for physical and electronic records through the First and Second Schedules and recognises manual as well as digital or electronic signatures under the Information Technology Act, 2000.

These reforms reflect the government’s continued commitment to modernising laws in line with technological advancements and evolving economic needs, promoting ease of doing business and strengthening a modern and efficient financial system, according to the Finance Ministry statement.

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