Politics · India Bureau
India's modernised banking evidence law to take effect October 1
The Bankers' Books Evidence Act, 2026 will come into force on October 1 following presidential assent, introducing a contemporary framework for admitting banking records as courtroom evidence. The legislation recognises digital and cloud-based banking records while streamlining certification procedures.
LSN India ·
India's finance ministry confirmed on Friday that the Bankers' Books Evidence Act, 2026 will become operational from October 1, 2026, following a presidential notification dated September 10. The legislation, which received presidential assent last month, establishes a modern legal framework governing the use of banking records in judicial proceedings, aligning with current banking sector practices.
The Act adopts a technology-neutral approach that formally recognises banking records maintained across multiple formats, including physical documents, electronic systems, digital platforms, virtual storage and cloud-based infrastructure. This recognition addresses the evolving nature of contemporary banking operations and enables courts to accept evidence from diverse sources.
The legislation introduces standardised and simplified procedures for certifying banking records, permitting certification through manual signatures, digital means or electronic authentication methods. These provisions are designed to reduce procedural delays and administrative burdens in legal proceedings involving banking documentation.
The Act also clarifies provisions regarding the summoning of bank officials in cases where the bank is not a party to the proceedings. Courts must now document a "special cause" in writing before summoning bank officials, providing greater protection to financial institutions and establishing clearer procedural guidelines.