Parliament passes Bankers' Books Evidence Bill to recognise digital banking records as legal evidence
New Delhi, August 10
The Rajya Sabha on Monday passed the Bankers' Books Evidence Bill, 2026, paving the way for replacement of the colonial-era 1891 act with a modern legal framework aimed at recognising electronic and digital banking records as evidence in legal proceedings. The Lok Sabha had already passed the Bill on August 5.
The Bill, seeks to repeal and replace the Bankers' Books Evidence Act,1891, and update the law governing the use of bankers' books and records in courts in line with the present-day banking system.
With passage by both Houses of Parliament, the Bill marks a significant step towards updating the evidentiary framework governing banking records and bringing a law enacted in 1891 in line with contemporary banking practices.
The Bankers' Books Evidence Bill, 2026, retains most of the provisions of the existing Act, under which certified copies of bank records can be used as evidence in legal proceedings without requiring production of the original records.
A key change proposed by the Bill is the explicit recognition of electronic or digital records of bankers' books as admissible, valid and legally enforceable evidence, subject to specified safeguards.
Union Finance Minister Nirmala Sitharaman said the Bill "provides for a technology neutral legal framework for Bankers Books" and "recognizes electronic and digital banking records."
Under the proposed framework, an electronic or digital copy would be admissible if it is a true copy of the relevant entry or information and correctly represents or is appropriately derived from the original records. The Bill also requires that no unauthorised alteration of data is detected and that there is no tampering with the system or any other event that could undermine the integrity and accuracy of the record.
The Bill also retains provisions relating to the production of bankers' books in legal proceedings.
Under the existing law, an officer of a bank cannot ordinarily be compelled to produce a banker's book in a proceeding to which the bank is not a party, nor can the officer be compelled to appear as a witness to prove matters, transactions or accounts recorded in such books. Such production or appearance can be ordered by a court or judge for a special cause.
The 2026 Bill defines the circumstances constituting such a special cause. These include cases where the accuracy or genuineness of an entry or information is doubtful, where an event indicates that the regular process of maintaining records has been interrupted, or where a bank fails to comply with a court order relating to inspection of its books.
Sitharaman said the new framework would also strengthen protections for bank officers, noting that it "strengthens the statutory protection available to the bank officers where the bank is not a party to the proceedings."
The Finance Minister said the legislation was necessary as India had rapidly digitised its economy, with banking and financial transactions increasingly being conducted digitally. "India has shown exemplary speed in digitizing its economy," she said.
Another significant provision enables the Centre to extend the application of the proposed law to other entities or classes of entities operating in the financial sector through a notification.The government may specify conditions, exceptions or modifications while extending the provisions to such entities.
The Bill currently applies to entities engaged in banking business as well as post office savings banks and money order offices, retaining the scope of the existing legislation while providing flexibility to cover other financial-sector entities in the future.
— ANI
Reader Comments
A much-needed reform, but I hope the safeguards mentioned are actually implemented properly. Digital records can be tampered with, and we need strong checks to ensure data integrity. Otherwise, this could create more problems than it solves.
As someone working in the banking sector, this is a blessing! We deal with thousands of digital transactions daily and producing physical records in court was a nightmare. This bill will make our job so much easier. 😊
Good step forward, but I wonder how this will work for rural areas where digital infrastructure is still weak. Also, what about older people who are not tech-savvy? We need to ensure this doesn't create a digital divide in legal matters.
This is exactly what Digital India needed! The 1891 act was written when there were no computers, forget the internet. Now with UPI, net banking, and everything digital, the law finally matches reality. Proud of this progressive step. 🇮🇳
While I appreciate the intent, I'm concerned about the provision allowing the government to extend this to other financial entities. We need clear guidelines to prevent misuse of banking data. Privacy and data protection should be the top priority.
The Finance Minister is right—India's digital transformation has been remarkable. This bill is another step in the right direction. But we must ensure our cybersecurity laws are equally updated to protect against data breaches. Safeguards are key!
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