๐๐๐ ๐ข๐ฌ๐ฅ๐๐ญ๐ข๐ฏ๐ ๐๐ฉ๐๐๐ญ๐ – ๐๐ก๐ ๐๐๐ง๐ค๐๐ซ๐ฌ’ ๐๐จ๐จ๐ค๐ฌ ๐๐ฏ๐ข๐๐๐ง๐๐ ๐๐ข๐ฅ๐ฅ, 2026
On 03 August 2026, the Hon’ble Finance Minister, Smt. Nirmala Sitharaman, introduced the Bankers’ Books Evidence Bill, 2026 in the Lok Sabha, seeking to repeal and replace the Bankers’ Books Evidence Act, 1891.
The 1891 Act was enacted when banking records primarily comprised physical ledgers, day books and cash books. While subsequent amendments recognised electronic records, the statutory framework remained rooted in a paper-based era. The 2026 Bill seeks to modernise this framework for a digital-first banking ecosystem.
๐๐ฆ๐บ ๐ฉ๐ช๐จ๐ฉ๐ญ๐ช๐จ๐ฉ๐ต๐ด ๐ช๐ฏ๐ค๐ญ๐ถ๐ฅ๐ฆ:
(i) ๐๐๐๐ก๐ง๐จ๐ฅ๐จ๐ ๐ฒ-๐ง๐๐ฎ๐ญ๐ซ๐๐ฅ ๐๐๐๐ข๐ง๐ข๐ญ๐ข๐จ๐ง ๐จ๐ “๐๐๐ง๐ค๐๐ซ๐ฌ’ ๐๐จ๐จ๐ค๐ฌ”: Covers records maintained in physical, electronic, digital, virtual and cloud-based formats, including backup and disaster recovery systems.
(ii) ๐๐๐๐จ๐ ๐ง๐ข๐ญ๐ข๐จ๐ง ๐จ๐ ๐๐ข๐ ๐ข๐ญ๐๐ฅ ๐ซ๐๐๐จ๐ซ๐๐ฌ: Electronic and digital records cannot be denied admissibility solely because of their format, provided the statutory conditions are satisfied.
(iii) ๐๐ญ๐๐ง๐๐๐ซ๐๐ข๐ฌ๐๐ ๐๐๐ซ๐ญ๐ข๐๐ข๐๐๐ญ๐ข๐จ๐ง ๐๐ซ๐๐ฆ๐๐ฐ๐จ๐ซ๐ค: Separate certificate formats have been prescribed for physical and electronic records, with authentication permitted through manual or digital signatures.
(iv) ๐๐ฑ๐ฉ๐๐ง๐๐๐ ๐๐๐๐ข๐ง๐ข๐ญ๐ข๐จ๐ง ๐จ๐ “๐๐๐ง๐ค”: The Central Government may notify additional financial sector entities to which the legislation will apply.
(v) ๐๐๐๐ข๐ง๐ข๐ญ๐ข๐จ๐ง ๐จ๐ “๐ฌ๐ฉ๐๐๐ข๐๐ฅ ๐๐๐ฎ๐ฌ๐”: For the first time, the Bill specifies the circumstances in which courts may require bank officials to produce records or testify where the bank is not a party.
(vi) ๐๐ฒ๐๐๐ซ๐ฌ๐๐๐ฎ๐ซ๐ข๐ญ๐ฒ ๐๐ง๐ ๐ข๐ง๐ญ๐๐ ๐ซ๐ข๐ญ๐ฒ ๐ฌ๐๐๐๐ ๐ฎ๐๐ซ๐๐ฌ: Admissibility of electronic records is subject to safeguards relating to system reliability, protection against unauthorised access or alteration, secure storage and transfer, and resilience against cyber threats.
The Bill is a significant legislative step towards aligning India’s evidentiary framework with contemporary banking practices. By according statutory recognition to digital banking records while prescribing robust authentication and integrity standards, it is likely to have considerable implications for litigation, investigations and regulatory proceedings involving banks and financial institutions.
Copy of the Bankers’ Books Evidence Bill, 2026 is attached herewith.