Govt tables Bankers' Books Evidence Bill 2026 in Lok Sabha

The government on Monday introduced a Bill in the Lok Sabha to replace the British-era Bankers' Books Evidence Act, 1891, with a new law that would recognise digital and virtual bank records as admissible evidence in courts.

Finance Minister Nirmala Sitharaman introduced the Bankers' Books Evidence Bill, 2026, which seeks to repeal and replace the 1891 legislation in line with the growing reliance on digital banking and electronic records.

Digital, cloud-based bank records to get legal recognition

The proposed law seeks to broaden the definition of 'bankers' books' to cover records maintained by banks in physical, electronic, digital, virtual, cloud-based or any other form.


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This would create a technology-neutral and future-ready legal framework for the use of bank records in judicial proceedings, according to the Bill's statement of objects and reasons.

"With the advancement of technology and growth of digital banking, bank records are increasingly created, stored and maintained using contemporary technology (instead of physical record). It has, therefore, become necessary to modernise and strengthen the existing legal framework to meet the requirements of the present banking system," the statement said.

The Bill proposes standardised certificate formats and allows authentication through manual, digital or electronic signatures. It also expressly recognises the admissibility of electronic bank records and allows them to be produced in either physical or electronic form.

Govt may extend law to other financial entities

The proposed legislation would empower the central government to extend its applicability to any entity or class of entities operating in the financial sector, subject to specified conditions.

The Bill also seeks to define the term 'special cause', under which a court may, through a written order, require a bank officer to produce bankers' books or appear as a witness to prove matters, transactions or accounts in legal proceedings where the bank is not a party.

The Bankers' Books Evidence Act, 1891 was enacted during the pre-independence era to facilitate the use of certified copies of bank records as evidence in legal proceedings without requiring the original records to be produced.

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The legislation was framed at a time when banking records were predominantly maintained in physical form. The proposed Bill seeks to replace this framework with one that reflects the digital nature of modern banking records.