New banking evidence law to take effect from 1 October 2026

The Bankers' Books Evidence Act, 2026 will come into force on 1 October 2026, according to a notification dated 10 September 2026. The legislation, which received presidential assent on 13 August 2026, replaces the Bankers' Books Evidence Act, 1891.

The new law sets out a modern framework for using banking records as evidence, reflecting changes in banking practice and technology since the original statute was enacted. It adopts a technology-neutral approach, recognising records maintained in physical, electronic, digital, virtual, cloud-based and other contemporary forms.

It also provides for simplified and standardised certification of banking records, including through manual, digital or electronic signatures.

The Act offers greater clarity on the summoning of bank officials in cases where the bank is not a party to the proceedings. In such instances, a court will be required to record a "special cause" in writing before summoning an official.

Additionally, the Central Government may extend the provisions of the Act to specified financial sector entities or classes of entities, a provision intended to allow the framework to adapt to a changing financial landscape.

The government has described the measure as part of its broader effort to modernise laws in step with technological advances, promote ease of doing business and strengthen the financial system.