look news india
There is going to be a huge and historic change in the banking and legal history of the country, which will have a direct impact on every citizen who is associated with bank accounts, loans, transactions or financial disputes. Till now, during the hearing of any bank related dispute or case in the courts, paper documents, account books and old files used to dominate, the verification of which took a long time of months and sometimes years. But now a revolutionary step has been taken towards making the country’s financial system completely hi-tech and modern, under which from October 1, the digital records of banks will be directly validated in the courts. With the implementation of this new and big change, the 135 years old law of the British era will be buried in the pages of history, due to which the unnecessary obstacles in the justice process will automatically end and the cases will start being resolved at a record breaking speed.
According to the old laws made during the British era, there were strict and complex rules for presenting financial evidence in the courts, due to which there was a lot of sweat in the heels in getting the testimony and documents verified in the cases related to banks. With time, the country is rapidly moving towards Digital India and today almost all the banks of the country keep all the accounts and transaction data of crores of their customers safe in computer servers, cloud and digital format. Keeping these modern realities in mind, the government and the judiciary have together taken a bold decision to change this century-old law, thereby simplifying the legal processes as per the digital age. After this change, electronic statements, documents with digital signatures and computer generated passbooks extracted from banks’ servers will be directly accepted by the courts without any lengthy and complicated process, which will further strengthen the coordination between the banking sector and the judicial system.
The biggest and revolutionary benefit of getting legal recognition of the digital records of banks will be that the decisions in the cases related to check bounce, loan default, fraud and financial fraud pending in the courts will be available in a very short time. Whereas earlier experts and bank officials had to make repeated rounds of courts to prove the authenticity of a small bank statement, now with the automatic validation of digital records, this process will become a formality of seconds. This new system will not only reduce the burden of cases on the courts of India rapidly, but will also free the common citizens, businessmen and corporate world from unnecessary legal hassles. When digital evidence will be considered completely solid in the eyes of law, it will become impossible for fraudsters and defaulters to delay the cases for years by resorting to court tricks, which will further strengthen the financial discipline in the country.
After this historic change, the level of transparency in financial transactions between banks and customers will increase manifold as accurate and legally verified data of every digital transaction will always be available. Now the compulsion for banks to maintain heavy paper documents and registers will end, allowing them to focus fully on making their digital infrastructure and data security more robust. This is also a huge relief for the customers because if any dispute arises with the bank, they will be able to present their digital bank statement and transaction history directly in the court as strong evidence of their case without any legal hassles. Technical experts believe that this step is going to be the biggest milestone so far in the direction of making India’s economy completely paperless and modern technology based.
This step taken by the Government of India brings the country’s financial system at par with global standards, where developed countries of the world are already working completely on digital evidence. This reform will also strengthen the confidence of foreign investors and big companies in the Indian judicial system and banking system because they know that the settlement of commercial and financial disputes here will be done in a very transparent and short time with the help of modern technologies. To ensure the success of these new rules coming into effect from October 1, instructions have already been issued to all nationalized, private and co-operative banks of the country to completely update their IT systems and legal cells. Thus, on one hand, the 135-year-old colonial system is coming to an end, while on the other hand, India’s banking and judicial structure seems fully prepared to face the modern challenges of the future.