New Delhi [India], September 11 : The Bankers’ Books Evidence Act, 2026, which replaces the 1891 law governing the use of banking records as evidence, will come into force from October 1, bringing a technology-neutral framework for physical, electronic, digital and cloud-based banking records, according to a release by the Ministry of Finance.
The release said the new Act aims to align the legal framework governing banking records with contemporary banking practices and technology, while promoting ease of doing business and modernising the legal and regulatory framework.
The Act received the assent of President on August 13, 2026, while a notification dated September 10 appointed October 1 as the date for its implementation.
Under the new framework, “bankers’ books” will include records maintained in written or physical form as well as those stored electronically, digitally, virtually or at offsite and cloud locations, including backup and disaster recovery sites.
The Act also provides for simplified and standardised certification of banking records, allowing certificates to be authenticated through manual, digital or electronic signatures.
For electronic and digital records to be admissible as evidence, the law lays down conditions relating to the proper functioning and regular use of computer systems, authorised data entry, protection against unauthorised changes, secure data transfer, and safeguards against tampering and cyber risks.
The new framework also sets out clearer rules on when bank officials can be required to appear in legal proceedings where the bank is not a party. Such officials cannot be compelled to produce bankers’ books or appear as witnesses unless a court finds a “special cause” and records it in writing.
The Act defines “special cause” to include doubts over the accuracy or genuineness of records, disruption in regular record-keeping, or non-compliance by a bank with a court order.
Beyond banks, the Central Government may also extend the provisions of the Act to specified financial-sector entities or classes of entities, subject to conditions, exceptions or modifications notified by it.
The Act repeals the Bankers’ Books Evidence Act, 1891, while preserving rights, liabilities, investigations and legal proceedings arising under the repealed law.
The Ministry said the reforms are aimed at ensuring that laws governing banking records keep pace with technological advancements and the evolving needs of the financial system.