Bankers' Books Evidence Bill 2026 passed: What the law changes, key takeaways from FM Sitharaman's reply

The Rajya Sabha on Monday passed the Bankers' Books Evidence Bill, 2026, which seeks to replace the 1891 legislation governing the use of banking records as evidence in legal proceedings and bring the law in line with the digital transformation of the banking sector.

The Bill, which was passed by the Lok Sabha on August 5, was approved by voice vote in the Upper House.

Replying to the debate, Finance Minister Nirmala Sitharaman said the new legislation would provide a technology-neutral legal framework for bankers' books and recognise records maintained in physical, electronic, digital, virtual or cloud-based formats.

"The Bill strengthens public confidence by providing a clear, secure and transparent legal framework for the use of banking records in legal proceedings while fully safeguarding the privacy and the confidentiality of customers," Sitharaman said.

What does the Bill change?

The Bill repeals and replaces the Bankers' Books Evidence Act, 1891, which was framed when banking records were predominantly paper-based.

Sitharaman said Parliament was empowered to repeal and re-enact the legislation under Entry 45 of the Union List in the Seventh Schedule of the Constitution.

The new law expands the definition of "bankers' books" to include records maintained in written or physical form as well as those stored electronically or digitally.

The definition also covers records kept on-site or off-site, including at virtual or cloud locations and backup or disaster-recovery sites.

The Bill lays down conditions for the admissibility, validity and enforceability of electronic and digital banking records as evidence. It also allows the Central government to prescribe additional conditions through notification.

Digital signatures and standardised certificates

The legislation allows banking records to be authenticated through manual, digital and electronic signatures.

It also introduces standardised certificate formats for certified copies of bankers’ books, whether the records are maintained physically or electronically.

According to Sitharaman, these provisions will make it easier for electronic banking records to be produced and admitted as evidence in court.

The Bill also provides special cause as the basis for summoning bank officers in cases where the bank itself is not a party.

This is intended to prevent bank officials from being unnecessarily called to court in disputes unrelated to the bank while still allowing electronic evidence to be produced when required.

Law can be extended to other financial entities

Sitharaman said the Bill also takes into account the expansion of India's financial ecosystem beyond traditional banks.

She pointed to the emergence of non-banking financial companies (NBFCs), payment aggregators, fintech companies and other financial service providers with a pan-India presence.

Clause 4 of the Bill enables the govt to extend the law to other regulated financial entities through a notification, she said.

The provision is aimed at creating a uniform evidentiary framework across the financial sector.

Sitharaman said banking records would be allowed to be produced in physical or electronic form, depending on the circumstances.

Why is the 1891 law being replaced?

Sitharaman said India's banking system has undergone significant technological changes since the original legislation was enacted.

The 1891 law was designed around a paper-based banking system, with certified copies of physical bank records forming the basis of evidence in legal proceedings.

"India has shown exemplary speed in digitising its economy. So instruments with which you are able to do banking have also changed," she said.

The government therefore believes the legal framework governing banking evidence must also reflect the way banking records are now created, stored and accessed.