Banking Rules 2026 : Parliament has recently passed an Act relating to the banking sector. It is called “Bankers Books Evidence Bill 2026”. It replaces the 135 year old “Bankers Books Evidence Act 1891”. This new law has provided many benefits to consumers, but it has also raised some controversies. The old law was enacted at a time when banking records were kept in paper registers and ledgers.
The main objective of the new law is to modernize the rules for introducing bank records as legal evidence in court proceedings in the age of digital and online banking. However, discussions have also started on some provisions to customer data and privacy. Customers are most concerned about their bank account details, which any police officer can now easily get from the bank.
Learn about the 5 most important changes in the new law.
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Recognition of digital and electronic bank records as legal evidence
According to the new rule, electronic, digital, virtual and cloud-based bank records will legally be considered “bankers’ books”. Transaction data stored electronically by banks can now be used as evidence in court. However, compliance with regulations such as data accuracy, system security and data integrity will be mandatory.
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Use of certified copies instead of original records
Did Mayawati reveal opposition to FCRA Amendment Bill 2026? “Prorogation of Parliament will benefit the government,” he said. Banks will not be required to produce their original physical or digital systems for court proceedings. Only a certified copy or extract will suffice. In the case of digital records, banks will need to provide a technical certificate confirming that the system is functioning properly and the data is secure.
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Right to request bank account details
This change is causing some controversy. According to the new rule, the police or investigating officers will be able to obtain customer account information directly from the bank without a court order to investigate the case. However, the officer should be of a certain rank or above Superintendent of Police (SP) level.
The bank must provide this information to the customer, but is exempt from providing the information to the customer in cases involving national security, organized financial crime or ongoing investigations. Civil rights groups have raised privacy concerns about this provision.
4. Relief from frequent court visits to bank officials
According to the new rule, if a legal case is not directly to the bank, bank officials will not be compelled to appear in court repeatedly to produce original documents or testify. However, officials can be summoned only if the court doubts the veracity of the bank records or if there is a special reason.
5. Extension of scope to other financial institutions
The new rule empowers the Central Government to extend the provisions of this Act to financial institutions other than banking institutions. Accordingly, in future, non-banking financial companies (NBFCs), pension funds, insurance companies and other regulated financial institutions may also be brought under this Act.
