Bankers’ Books Evidence Act 2026 Comes into Force from October 1: Key Changes

Bankers’ Books Evidence Act, 2026 shall come into force from October 1, 2026, superseding the Bankers’ Books Evidence Act, 1891. The act has updated the laws relating to the use of banking records as evidence in any court proceeding, arbitration, investigation or inquiry. The act has taken into consideration that the record can be made physically, electronically, digitally, virtually or via cloud technology and has laid down uniform rules for their certification and authentication. The act was assented by the President on August 13, 2026, and the notification date is September 10, 2026.

What Prompted the Passing of the Bankers’ Books Evidence Act, 2026?

The previous Act came into effect in 1891 at a time when most banking books were documented in hard copy forms. The introduction of digitized banking has seen records being made using digital and virtual modes of record keeping.

Also, the Act of 2026 gives a technology-neutral definition of the banking records. Its aim is to harmonize evidentiary laws with current banking methods without altering the existing system of certification of bank records.

What are ‘bankers’ books’ as defined under the new Act?

The Act will encompass books that include,

• Ledgers
• Day books
• Cash books
• Account books
• Records generally kept in the course of normal banking operations

This definition will also include records stored in an electronic or digital manner, even those stored at off-site or virtual places.

Banking Records in Digital Form Accepted as Evidence

Another important change is the acceptance of records of bankers’ books in digital form as evidence in accordance with certain prescribed conditions.

The conditions for accepting records in digital form as evidence include that the record in certified form should be an accurate reproduction or derivation of the original record. The legislation makes provision regarding the integrity of the system and data. The certification scheme caters for issues like unauthorized alteration, tampering and network security.

Bank Officers’ Protection under Section 118(b)

The section offers protection to the bank officers when the issue of production of the banker’s books is involved.

In general, no bank officer shall be obliged to produce banker’s book or be a witness to prove banking entries when the bank is not a party to the case. But a court order to produce records or make an officer appear can be issued if a special cause exists.

Special cause involves a situation wherein the accuracy of an entry or authenticity of the same is in question, the record-making process is interrupted, or there is failure to comply with a previous order issued by the court concerning inspection and certification of copies.

Scope of the Legal Proceedings

The Act is applicable where banking records can be used as evidence in the,

• Legal proceedings
• Cases and inquiries
• Arbitrations
• Investigations
• Inquiries conducted under the Bharatiya Nagarik Suraksha Sanhita, 2023
• Proceedings conducted under other laws where evidence is being collected

Thus, the scope of the act is extended to the procedural aspects of the legislation other than the normal court processes.

Scope in Respect of Financial Sector Institutions

The act of 2026 also allows for a certain degree of flexibility in regard to extending its provisions to other financial sector institutions.

Through notification, the Central Government may extend the provisions of the Act to specific entities or class of entities in the financial sector.

Difference Between Bankers Books Evidence Act, 1891 and the Bankers Books Evidence Bill, 2026