The Banker’s Book of Evidence Act,

1891
• Bankers keep their accounts and its
details by maintaining various journals
and ledgers.
• If any claim on the bank needs to be
established in court these books,
journals etc are to be produced in the
court
• It is difficult to give all the account
statements and extracts, hence this act
was enacted
• Act was passed on 1st October ,1891
• Object- to avail the copies of entries in
banker’s books and make them
receivable in evidence under certain
conditions
• This Act extends to whole of India
except Jammu and Kashmir
• It is the guidelines for any banking
institution to get an idea about the legal
proceedings related to banking records
• Any discrepancy in the record will
amount to violation of the act
• Book keeping or recording of
transactions are made in form of books
like registers, ledgers, account books,
cash books, etc. These day its in
electronic form.
• “bankers’ books” include ledgers, day-
books, cash-books, account-books and all
other records used in the ordinary
business of the bank, whether these
records are kept in written form or stored
in a micro film, magnetic tape or in any
other form of mechanical or electronic
data retrieval mechanism, either onsite or
at any offsite location including a back-up
or disaster recovery site of both
• Legal proceedings means, - (i) Any
proceeding or inquiry in which evidence is
or any be given;
• (ii) An arbitration; and
• (iii) Any investigation or inquiry under the
Code of Criminal Procedure. 1973 (2 of
1974), or under any other law for the time
being in force for the collection of evidence,
conducted by a police officer or by other
person (not being a Magistrate) authorised
in this behalf by Magistrate or by a
magistrate or by any law for the time being
in force
• Certified copy-
• Books of bank if maintainable in the
written form , a copy of any entry in such
books together with a certificate written
at the foot of such copy mentioning that,
• it is a true copy of such entry
• that such entry is contained in one of the
ordinary books of the bank and was
made in the usual and ordinary course of
business and that such book is still in the
custody of the bank
• such certificate being dated and
subscribed by the principal accountant
or manager of the bank with his name
and official title.
• Consist of printouts of data stored in a
floppy, disc, tape or any other
electromagnetic data storage device, a
printout of such entry or a copy of such
printout together with such statements
certified in accordance with the
provision
• A certificate by a person in charge of
computer system containing brief description
of the computer system and its particular
regarding:
• The safe guards adopted by the system to
ensure that entry of data or any other
operation is performed only by authorized
personnel
• Safeguards adopted to prevent and detect
unauthorized change of data
• Safeguards available for retrieval of data due
to systemic failure or any other reason
• The manner in which data is
transferred from system to removable
storage like floppies, DVD’s or pen
drives
• The mode of verification in order to
ensure data has been transferred
accurately to any removable device
• The arrangements made for storage
and custody of such storage devices
• The safeguards to prevent and detect
tampering with the system or any other
factor.
• A further certificate from the person in
charge of the computer system that to
the best of his knowledge and belief,
such computer system operated
properly at the material time, he was
provided with all the relevant data and
the printout in question represents
correctly and is appropriately derived
from the relevant data
• a certified copy of any entry in a
banker’s book shall in all legal
proceedings he received as prima facie
evidence of the existence of such
entry, and shall be admitted as
evidence of the matters, transactions
and accounts therein recorded in every
cases where, and to the same extent
as, the original entry itself is now by
law admissible
• State Bank of India v. Yumnam
Gouramani Singh –if entries on the
book of account is corroborated by
Branch Manager and other officials it is
sufficient proof of a loan transaction.
No further proof is required by the court
of law
• In any proceeding where the bank is not a
party, no officer shall be compelled to
produce any banker’s book contents
which can be provided under this Act by
production of certified copies
• Similarly no officer of the bank shall be
called as witness to prove the manner or
the transactions and accounts recorded
in the certified copies.
• Unless by order of the court or a judge
made for special cause
 Court Order Required for Inspection
• On application of any party during legal
proceeding, the Court may order that,
• Such a party is at liberty to inspect and take copies
of any entry in a banker’s book for any of the
purpose of the proceeding
• The bank may prepare and produce, within a
specific time , certified copies of all such entries ,
with a certificate stating, entries are to be found in
the books are relevant to the matter of such
proceeding, such certificate shall be dated
• Kattabomman Transport Co. Ltd. V. State Bank of
Travancore (legal proceeding has to be pending, and
inspection of books is necessary)
• The order so passed shall be served on the
bank at least three clear working days
before the same is to be obeyed
• The bank may at any time before the time
limited for obedience to any such order
either offer to produce their books at the trial
or give notice of the intention to show cause
against the order
• If the bank choose to give show cause
against the order then the order passed by
the court or judge cant be enforced without
further order
• Chandradhar Goswami v Gauhati Bank
Ltd- The SC held that the certified copies
are of evidentiary value to the same extent
as the original entry itself and no further.
Hence, where the entries are not admitted,
it is the duty of the Bank to produce
evidence in support of the entries to show
that the money was advanced and
thereafter the entries would be of use as
corroborative evidence
• P.Padmanabh v. Syndicate Bank Ltd(2008)- Admissibility of
Electronic Records
The Banking Ombudsman
Scheme, 2006
To provide an inexpensive, transparent
and credible mechanism ensuring fair
treatment of the common person
utilizing Banking services
 GOALS
• To ensure customer facilitation and protection
through redressal of grievances of users of banking
services in an inexpensive, expeditious, fair,
reasonable and hassle free manner that will
provide impetus for improved customer service on
a continuous basis
• Provide feedback for framing appropriate and
timely guidelines
• Enhance awareness of the scheme itself
• Legal Basis: Notified in terms of Sec
35A of Banking Regulation Act 1949
• Purpose of the Scheme: Expeditious
and inexpensive redressal of customer
complaints.
• Areas covered:
• Deficiency in banking services
• deficiency in sanctioning of loans and
advances
• Other specified matters
 Receipt of
complain

Reviewed by BO

Reject
Maintainable
Not maintainable

Referred to bank
Mutual settlement
(Clause 11)
 Complaints

Reject (clause Award (Clause

13) 12)

Complainant’s Complainant to Bank &

right to accept & Bank Complainant
can file an
Appeal to implement appeal
• An ombudsman is an official,
• Appointed by the government or by the
parliament
• Who is charged with representing the
interest of the public by investigating
and addressing complaints reported by
individual citizens
• The Govt of India has designated several
ombudsman for the redress of grievances
and complaints from individuals in the
banking, insurance and other sectors being
serviced by both private and public bodies
and corporations
• The Ombudsman is sometimes referred to
as Chief Vigilance Officer or CVO
• The Central Vigilance Commission was
setup on the recommendation of the
Santhanam Committee (1962-64)
• In India there are around 15
Ombudsman
• The banking Ombudsman shall be a
person of repute experience in the field
of law, banking, financial administration
or management sectors
• The Reserve Bank shall specify the
territorial limits to which the authority of
each of the banking ombudsman shall
extend
• The banking Ombudsman may hold
sittings at such places within his area
of jurisdiction as may be considered
necessary and proper by him, in
respect of a complaint or reference
before him
• The Reserve Bank shall depute such
number of officers and other staff to the
office of the BO as considered
necessary for the functioning
Powers of BO
• To receive complaints relating to
banking services
• To consider such complains relating to
deficiencies in the banking and
facilitate their satisfaction or settlement
by agreement through conciliation and
mediation between bank and the
aggrieved parties or by passing an
award
• BO has the power to call for
information , he may ask the bank or
any other bank concerned with the
complaints to provide any information
or furnish certificated copy of any
document relating to the complaints
• BO shall maintain proper confidentiality
of such information
 Grounds on which BO can receive
or consider complaints
• failure to issue or delay in issue, of drafts,
pay orders or bankers’ cheques;
• non-adherence to prescribed working
hours;
• failure to honour guarantee or letter of
credit commitments ;
• failure to provide or delay in providing a
banking facility (other than loans and
advances) promised in writing by a bank or
its direct selling agents
• Delay and failure in providing necessary
banking services and products like credit
cards
• Complaints of accounts operated by NRIs
• Refusal in opening deposit accounts and
levying additional charges without informing
the customer
• Delay in distribution of pension
• Delay / refusal in accepting payments
towards taxes
• Refusal/ delay in closing of accounts
• Non adherence to fair practices code as
adopted by the bank
• Non observance of RBI guidelines
• Non compliance of interest rates as per
guidelines from RBI
• non acceptance of loan application without
furnishing valid reasons
• Any other matter relating to the violation of
the directives issued by the RBI in relation
to banking or other services
 procedure
• Aggrieved persons not satisfied by a
bank’s service and its resolution of
complaint can apply to the Banking
Ombudsman within one year; under one or
more ground mentioned in clause 8 of the
scheme
• Complaint in prescribed format or in any
other but incorporating all the required
information.
• Complaints can be submitted online/
email/in hard copy
• Complaints from individuals/ their
• BO can also entertain complaints
covered by this Scheme received by
Central Government or Reserve Bank
• The application generated unique
complaint ID
• RBI and Finance ministry can also
monitor the status of the complaints
• The Banking Ombudsman does not
charge any fee for filing and resolving
customers’ complaints
• One’s complaint will not be considered if:

a. One has not approached his bank for

redressal of his grievance first.
• b. One has not made the complaint within
one year from the date one has received the
reply of the bank or if no reply is received if it
is more than one year and one month from
the date of representation to the bank.
• c. The subject matter of the complaint is
pending for disposal / has already been
dealt with at any other forum like court of
law, consumer court etc.
• The institution complained against is
not covered under the scheme.
• The subject matter of the complaint is
not within the ambit of the Banking
Ombudsman.
• If the complaint is for the same subject
matter that was settled through the
office of the Banking Ombudsman in
any previous proceedings.
• Complaints arising out of frauds and
forgery and subjudice cases (Supreme
Court’s observation that it would not be
appropriate for BOs to give a finding on
forgery or to form an opinion on cases
already referred to courts
• Limit on the amount of compensation –
amount arising directly out of the act or
omission of the bank or Rs. 10lakhs,
whichever is lower
• In case of mental agony or
harassment- compensation not
exceeding Rs. 1lakh
• BO endeavours to promote, through
conciliation or mediation between the
complaint and the bank named in the
complaint
• Or else,
• If a complaint is not settled within a
period of 1month
• Proceeds to make an award on merits
of the case
• If one is not satisfied with the decision
passed by the Banking Ombudsman,
one can approach the appellate
authority against the Banking
Ombudsmen’s decision. Within 30days
• If the AA is satisfied, that the applicant
has sufficient cause for delay, may
allow further period not exceeding
30dyas
• Appellate Authority is vested with a
Deputy Governor of the RBI
• The appellate authority may 
i. dismiss the appeal; or 
ii. allow the appeal and set aside the
award; or 
iii. send the matter to the Banking
Ombudsman for fresh disposal in
accordance with such directions as the
appellate authority may consider
necessary or proper; or 
iv. modify the award and pass such
directions as may be necessary to give
effect to the modified award; or 
v. pass any other order as it may deem fit