India Rewrites The Rulebook For Banking Records, New Evidence Act Kicks In From October 1

New Delhi: India's legal framework governing banking records will undergo a major digital-era overhaul from October 1, 2026, when the Bankers’ Books Evidence Act, 2026 comes into force.

The Finance Ministry has issued the notification implementing the legislation, which replaces the 135-year-old Bankers’ Books Evidence Act, 1891.

The new law received Presidential assent on August 13.

Digital, Cloud Records Get Recognition

The Bankers’ Books Evidence Act, 2026 adopts a technology-neutral approach, recognising banking records maintained in physical, electronic, digital, virtual and cloud-based formats.

Its definition of bankers’ books also covers records stored at backup and disaster recovery locations.

Importantly, electronic or digital banking records cannot be rejected as evidence merely because they exist in electronic form.

The legislation establishes safeguards covering the authenticity, integrity and cybersecurity of such records, bringing the evidentiary framework closer to modern banking practices.

New Certification System

The Act introduces separate certification mechanisms for physical and electronic records under its First and Second Schedules.

Records can be authenticated through manual signatures as well as digital or electronic signatures recognised under the Information Technology Act, 2000.

The government expects this standardised framework to simplify the certification and use of banking records as legal evidence.

Rules for Summoning Bank Officials

The legislation also clarifies when courts can summon bank officials in cases where their bank is not itself a party to proceedings.

Courts will need to record a “special cause” in writing before requiring bank officials to appear or produce records. The Act defines the limited circumstances that may constitute such a cause.

The Central government has also been empowered to extend the framework to specified financial-sector entities or classes of entities through notifications.

According to the Finance Ministry, the reforms are intended to modernise India's banking laws, support technological changes, improve ease of doing business and strengthen the efficiency of the financial system.