Lok Sabha passes bankers' books evidence bill 2026 to recognise digital banking records as legal evidence
New Delhi, August 5
The Lok Sabha on Wednesday passed the Bankers' Books Evidence Bill, 2026, which seeks to modernise the legal framework governing the admissibility of bank records as evidence and align it with contemporary digital banking practices.
Union Finance Minister Nirmala Sitharaman moved the Bill in the House after it assembled following the first adjournment at 2 PM. The legislation was passed amid opposition uproar without a discussion.
The Bill seeks to replace the existing legal framework with provisions that recognise the growing use of electronic and digital records in the banking sector. It provides that an electronic or digital record of a banker's book will be admissible, valid and legally enforceable as evidence, subject to the conditions prescribed under the legislation.
The proposed law expands the definition of "bankers' books" to cover records maintained by banks in physical, electronic, digital, virtual and cloud-based forms, as well as records stored through other electronic systems. This is intended to provide a technology-neutral and future-ready legal framework covering the different ways in which banking records are now created, stored and maintained.
The Bill also seeks to standardise the certification process for producing bank records as evidence in legal proceedings. It further empowers the Central Government to prescribe additional certification conditions and extend the applicability of the law to entities carrying on the business of banking through notification.
The legislation seeks to address limitations in the Bankers' Books Evidence Act, 1891, which was enacted when banking records were predominantly maintained in physical form. Under the existing framework, certified copies of bank records can be used as evidence in legal proceedings without requiring the original records to be produced.
According to the Statement of Objects and Reasons, technological advancements and the growth of digital banking have significantly changed how bank records are created, stored and maintained, making it necessary to strengthen and modernise the legal framework.
The Bill aims to ensure that banking evidence law keeps pace with technological developments while maintaining the authenticity and reliability of records produced before courts and other authorities. It provides a legal framework for the admissibility and certification of bank records in an increasingly digital banking environment.
— ANI
Reader Comments
As someone working in the fintech sector, I can tell you this is a much-needed reform. Courts were still asking for physical certified copies when the data is stored in multiple data centres. The digital evidence certification process needs to be robust though - we need proper audit trails and data integrity measures.
What happens if a bank's cloud server in another country gets hacked? Or if data gets corrupted? The Bill talks about "conditions prescribed" but we need clarity on who's liable when digital records are tampered with. Banks will love this - they can just say "technical glitch" and produce whatever records they want. 😒
Passing a major legal reform without discussion in Lok Sabha is concerning. Opposition parties raised objections for a reason. Digital evidence is good in theory, but our courts and law enforcement need proper training to handle e-evidence. Also, what about data privacy? These digital records can be accessed by anyone with the right permissions. Need more safeguards.
Yaar, if you've ever tried to get a bank statement for a legal case, you know how painful the current process is. Wait for days, pay fees, get physical certified copies. With digital records being legally recognised, this should speed up everything. Good move by the government, though I wish they had taken everyone along. #DigitalIndia 🇮🇳
Interesting to see India modernising its legal framework for digital banking records. We went through similar reforms in the US a while back. The key will be in the implementation - especially the certification standards and how courts handle challenges to digital evidence authenticity. Hope India gets
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