New legislation modernises a 135-year-old banking evidence framework, allowing electronic, digital, virtual and cloud-based bank records to be used as legally valid evidence.
The Lok Sabha on Wednesday passed the Bankers’ Books Evidence Bill, 2026, paving the way for digital and electronic banking records to be recognised as valid legal evidence in courts and other proceedings.
Union Finance Minister Nirmala Sitharaman moved the Bill after the House reconvened following an adjournment at 2 pm. It was passed amid protests by Opposition members and without a discussion.
The legislation seeks to overhaul the existing framework governing the admissibility of banking records as evidence and bring the law in line with the rapid shift towards digital banking.
Digital Bank Records Get Legal Backing
Under the proposed law, electronic and digital records forming part of a banker’s books can be admitted as valid and legally enforceable evidence, subject to prescribed conditions.
Significantly, the bill broadens the definition of “bankers’ books” to include records maintained in physical, electronic, digital, virtual and cloud-based formats. It also covers records stored through other electronic systems.
The expanded definition is aimed at creating a technology-neutral framework that can accommodate changes in the way banks create, process and store customer and transaction data.
Certification Process to Be Standardised
The bill also seeks to standardise the process through which bank records are certified before being produced as evidence in legal proceedings.
More from BusinessIt empowers the central government to prescribe additional certification requirements and, through notification, extend provisions of the legislation to other entities engaged in the business of banking.
The changes are expected to simplify the use of digitally maintained banking records in legal cases while ensuring that safeguards remain in place to establish their authenticity and reliability.
Replaces 1891-Era Framework
The new legislation seeks to address limitations in the Bankers’ Books Evidence Act, 1891, a law enacted when banking transactions and records were overwhelmingly paper-based.
The existing framework allows certified copies of banking records to be submitted as evidence without requiring banks to produce original documents. However, the massive expansion of internet banking, mobile transactions, digital payments and cloud-based recordkeeping has fundamentally transformed the banking ecosystem.
According to the Bill’s Statement of Objects and Reasons, technological advancements and the expansion of digital banking have significantly altered the manner in which banking records are created, stored and maintained, necessitating an updated legal framework.
The Bankers’ Books Evidence Bill, 2026, therefore seeks to ensure that India’s banking evidence laws keep pace with technological changes while preserving the authenticity and reliability of records submitted before courts and other authorities.
