Introduction:
India is now a leading fintech country, and its roots lie in the digitalisation of the banking system. This has led to banking records being in digital and electronic media. Consequently, recognition of digital banking records as evidence in legal proceedings is essential. The Bankers’ Books Evidence Act, 2026 includes digital banking records as evidence and acknowledges contemporary digital banking practices. The Act came into force on October 1, 2026 and repeals the old Act, the Bankers’ Books Evidence Act, 1891.
What is the Bankers’ Books Evidence Act, 2026?
The Bankers’ Books Evidence Act, 2026 (BBE Act), is an evidentiary law. It governs banking records, bankers’ books. BBE Act acknowledges contemporary digital banking practices and covers related matters. It is a further step in modernising the Indian legal system and provides a technology-neutral framework. Moreover, it has standardised authentication and certification of certified copies. It undisputedly comprises digital banking records in the contemporary evidentiary framework of the Bhartiya Sakshya Adhiniyam, 2023.
Old Legislation and Digital Banking Records:
The Bankers’ Books Evidence Act, 1891 was enforced when the banking system was paper-based. Over time, communication media have become digitalised, and so has the banking and financial system. Moreover, Financial transactions are taking place digitally, on one click. Therefore, the old Act was inadequate to answer the issues related to the digital banking system. Under the previous law, digital records were required to be supplied in printed form in legal proceedings. It just impedes the legal proceedings. However, it is not even possible to represent all digital records in printed form. After recognising digital evidence under the primary evidentiary framework, i.e., the Bhartiya Sakshya Adhiniyam, 2023, it is important to standardise other evidentiary laws to ensure the efficacy of legal proceedings.
Key Provisions of Bankers’ Books Evidence Act, 2026:
The new Act preserves the core evidentiary framework of the 1891 Act for proving banking records through certified copies. However, it has the following new key provisions:
a. Electronic and Digital Records: The Act under Section 6 recognises electronic and digital records of a banker’s book as evidence. Section 5 accepts certified copy stored in digital form as prima facie evidence of the existence of a banker’s book entry.
b. Certification of Bank Records: The certified copy, under Section 2(c)(ii), of a banker’s book entry includes copies of entries stored in any digital form. Section 3 includes the conditions for certification of such copy.
c. Production of Bankers’ Books and Bank Officers: There is no obligation on Bank officers to produce any banker’s book or to appear as a witness in any legal proceedings in which the bank is not a party. However, the Court can order it for special causes, as mentioned under Section 8(2).
d. Authority to Access the Banking Records: Under Section 11, an officer not below the rank of Superintendent of Police is authorised to conduct an investigation or inquiry under the act upon the order of Court.
e. Application to Financial-Sector Entities: In future, the Central Government can extend the application of this Act to books of other entities operating in the financial sector.
Conclusion:
Banking and financial systems are the backbone of any economy. Therefore, the legal framework governing them must be reformed as the economy advances. The Bankers’ Book Evidence Act, 2026, attempts to ensure the same objective. The Act establishes an evidentiary framework consistent with the present banking system. It is one step ahead, following the express inclusion of digital evidence under the Bharatiya Sakshya Adhiniyam, 2023.
Written by:
Sonali Ray.
