The Government of India has actively pursued reforms to strengthen the banking and financial sector, promote ease of doing business and modernize the legal and regulatory framework to meet the economy’s evolving needs. As banking practices and technology progress overtime, the laws governing banking records must also adapt to these changes.
The Bankers’ Books Evidence Act, 2026 received presidential assent on 13 August 2026. It will be replacing the Bankers’ Books Evidence Act of 1891. This new legislation provides a modern framework for using banking records as evidence.
It is in alignment with contemporary banking practices. According to a notification dated 10 September 2026, the provisions of the Act will come into force on 1 October 2026.
The Act adopts a technology-neutral approach. It recognizes banking records maintained in various formats, including physical, electronic, digital, virtual and cloud-based forms. What’s more, it simplifies as well as standardizes the certification of banking records and allows for manual, digital or electronic signatures.
In the new legislation, there is a greater clarity regarding the summoning of bank officials where the bank is not a party to the proceedings. It necessitates a “special cause” to be recorded in writing by the Court for such summoning.
The Central Government may also extend these provisions to specific financial sector entities or classes of entities. This would enable the framework to adapt to changing financial sector.
These reforms demonstrate Government’s ongoing commitment to updating laws in line with technological advancements as well as evolving economic needs. This effort aims to promote ease of doing business and enhance the efficiency of the modern financial system in India.
Source:- Ministry of Finance
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