Lok Sabha Passes Bankers’ Books Evidence Bill
The Lok Sabha has passed the Bankers’ Books Evidence Bill, 2026, which seeks to formally recognise electronic, digital, virtual and cloud-based banking records as admissible evidence in legal proceedings.
The Bill is intended to replace the Bankers’ Books Evidence Act, 1891, a 135-year-old law enacted when banking records were largely maintained in physical form. The proposed legislation is designed to align the evidentiary framework with contemporary digital banking practices.
Finance Minister Nirmala Sitharaman moved the Bill for consideration and passage in the Lok Sabha. It was passed by a voice vote without debate amid disruptions in the House.
A key provision of the Bill is the expansion of the definition of “bankers’ books”. It will cover records maintained by banks in physical, electronic, digital, virtual, cloud-based or other forms. This technology-neutral definition is intended to ensure that the law remains applicable as banking systems and record-keeping technologies continue to change.
The legislation also proposes standardised certification formats for banking records. Such records may be authenticated through manual, digital or electronic signatures. Electronic banking records would be expressly recognised as evidence and could be produced before courts in either physical or electronic form.
Another important provision would empower the Central Government to extend the applicability of the legislation to specified entities or classes of entities operating in the financial sector, subject to prescribed conditions.
The Bill also seeks to define “special cause”, under which a court may require a bank officer to produce bankers’ books or appear as a witness in relation to transactions, accounts or other matters in legal proceedings where the bank itself is not a party.
The existing 1891 law had originally enabled certified copies of bank records to be admitted as evidence without requiring banks to produce original books before courts. However, the rapid expansion of digital banking, electronic transactions and cloud-based record keeping has made an updated legal framework increasingly necessary.
Once enacted, the new framework is expected to provide greater legal clarity regarding the authentication and admissibility of digital banking records and reduce dependence on physical documentation in court proceedings involving banks and financial transactions.
