Lok Sabha passes bankers' books evidence bill 2026 to recognise digital banking records as legal evidence

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.

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)