Bankers' Books Evidence Bill will create a technology-neutral framework: FM Sitharaman
New Delhi, Aug 10
Finance Minister Nirmala Sitharaman on Monday said the Bankers' Books Evidence Bill, 2026 will modernise the legal framework governing banking records by recognising electronic and digital documents, standardising certification procedures, and facilitating their admissibility as evidence in courts and legal proceedings.
Replying to the discussion in the Upper House, FM Sitharaman said the bill provides a technology-neutral legal framework for bankers' books by expanding the definition of banking records to include documents maintained in physical, electronic and digital formats.
"The Bill recognises electronic and digital banking records, standardises the certification process and facilitates the admissibility of electronic banking records," FM Sitharaman said.
"It permits authentication through manual, digital and electronic signatures and, therefore, strengthens the statutory protection available to bank officers where the bank is not a party to the proceedings," the finance minister stated.
According to the Finance Minister, the revised definition covers records maintained in written or physical form, as well as those stored electronically or digitally at on-site and off-site locations, including virtual and cloud-based storage systems, backup facilities and disaster recovery sites.
"An expanded definition of bankers' books is being brought in. It includes records maintained in written or physical form or stored in electronic or digital form or otherwise, either on-site or off-site or at a virtual or cloud location, including backup or disaster recovery sites," the minister noted.
"The Act will prescribe the conditions to be satisfied for the admissibility, validity and enforceability of electronic and digital records of bankers' books as evidence, with an enabling provision for the Central Government to notify such other conditions," FM Sitharaman explained.
FM Sitharaman said the legislation standardises the certification process for certified copies of bankers' books irrespective of whether the records are maintained physically or electronically.
The bill also lays down provisions regarding the admissibility, validity and enforceability of electronic and digital banking records as evidence.
Defending the move to replace the existing law, FM Sitharaman said Parliament is empowered under Entry 45 of the Union List in the Seventh Schedule of the Constitution to repeal and re-enact legislation relating to banking.
— IANS
Reader Comments
As someone who works in a bank's compliance department, this is a welcome change. The current law is from 1891! It was written when bankers' books meant physical ledgers. Now we have customers transacting on apps, cloud storage, digital signatures... the old framework was completely outdated. This Bill brings us in line with modern reality. Smart move.
Live in Bangalore now but originally from Texas. This is exactly what modern banking needs — India's fintech sector is booming and the legal framework needs to keep up. Allowing digital and electronic records to be admissible in court is a big step forward. Also good to see the government focusing on technology-neutral language rather than specifying one particular tech.
Makes sense technically, but I hope the implementation doesn't create new problems. If banks can now store records only in digital form, what about customers who don't have easy access to technology? My father is 70 and still relies on physical passbooks. Also, what about data security — with cyberattacks increasing? The Bill should also address how long records need to be preserved digitally. Just saying we need to think this through, not just celebrate it.
Great step forward! The 1891 Bankers' Books Evidence Act was colonial-era legislation that made no sense in 2026. This Bill is future-ready — recognising cloud storage, digital signatures, electronic records. This will reduce litigation time significantly. 🇮🇳 Proud to see India modernising its legal framework while keeping up with our digital push under Digital India movement.
As a legal professional who deals
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