Bankers’ Books Evidence Act, 2026 to Come into Force from October 1

New Delhi, September 11, 2026 (Yes Punjab News)

The Bankers’ Books Evidence Act, 2026 will come into force from October 1, 2026, with the Finance Ministry issuing the notification for the new legislation on Friday.

The Act replaces the 1891 law and establishes a modern legal framework for using banking records as evidence, taking into account the rapid shift towards digital and technology-driven banking practices.

Under the new legislation, the definition of “bankers’ books” has been expanded to cover physical, electronic, digital, virtual and cloud-based records. It also includes records stored at backup and disaster recovery sites, ensuring that the legal framework remains technology-neutral and adaptable to emerging forms of data storage.

The Act introduces standardised certification mechanisms for banking records. Separate certificates have been prescribed for physical and electronic records under the First and Second Schedules. These can be authenticated through manual signatures as well as digital or electronic signatures recognised under the Information Technology Act, 2000.

The legislation also makes it clear that electronic or digital bank records cannot be denied admissibility merely because they exist in electronic form. It provides statutory safeguards relating to their authenticity, integrity and cybersecurity.

Another key provision concerns the summoning of bank officials when the bank itself is not a party to legal proceedings. Courts will have to record a “special cause” in writing before requiring such officials to appear or produce records. The Act defines “special cause” and sets out limited circumstances in which such requirements may be imposed.

The Central government has also been empowered to extend the framework to specified entities or classes of entities in the financial sector through notification, allowing the law to keep pace with changes in the sector.

The Finance Ministry said the reforms are aimed at modernising the legal framework in line with technological advancements and evolving economic needs, while promoting ease of doing business and strengthening the efficiency of the financial system.