Ø The Act modernises the legal framework
for use of banking records as evidence
Ø Simplified and standardised certification
to facilitate use of banking records in legal proceedings
1.
New
law replaces 1891 Act: The Bankers’ Books Evidence Act, 2026
replaces the Bankers’
Books Evidence Act, 1891, modernising the legal framework
governing banking records used as evidence.
2.
Presidential
assent: The
Act received the President’s
assent on 13 August 2026.
3.
Effective
date: A
Gazette notification dated 10
September 2026 appoints 1
October 2026 as the date on which the Act will come into force.
4.
Technology-neutral
framework: The
Act recognises banking records maintained in:
o Physical form
o Electronic form
o Digital form
o Virtual form
o Cloud-based systems
o Other contemporary formats
5.
Simplified
certification:
Certification of banking records is standardised and may be carried out through
manual, digital or
electronic signatures.
6.
Bank
officials’ summoning clarified:
Where a bank is not a
party to the proceedings, a Court can summon its officials only
where there is “special
cause”, which must be recorded in writing.
7.
Coverage
of financial-sector entities:
The Central Government may
extend the Act to specified financial-sector entities or classes of entities,
enabling the framework to adapt to changes in the financial system.
8.
Modernisation
of banking law: The
legislation updates rules that had been in place since 1891 to reflect rapid
technological and operational changes in banking.
9.
Ease
of doing business: The
reforms are intended to simplify evidentiary procedures and reduce procedural
uncertainty involving banking records.
10. Overall objective: The new framework seeks to create a modern, technology-neutral and efficient
system for using banking records as evidence, while supporting
the Government’s broader financial-sector and ease-of-doing-business reforms.
The Government has consistently pursued
reforms to strengthen the banking and financial sector, promote ease of doing business
and modernise the legal and regulatory framework in line with the evolving needs
of the economy. With banking practices and technology evolving rapidly, laws governing
banking records also need to keep pace with these changes.
The Bankers’ Books Evidence Act, 2026,
which received the assent of the President on 13th August 2026, replaces
the Bankers’ Books Evidence Act, 1891 and provides for a modern framework for the
use of banking records as evidence in line with contemporary banking practices.
The notification dated 10th September
2026 (Gazette Notification link attached below) appoints 1st October
2026 as the date on which the provisions of the Act will come into force.
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.
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.
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.