𝐋𝐞𝐠𝐢𝐬𝐥𝐚𝐭𝐢𝐯𝐞 𝐔𝐩𝐝𝐚𝐭𝐞 – 𝐓𝐡𝐞 𝐁𝐚𝐧𝐤𝐞𝐫𝐬’ 𝐁𝐨𝐨𝐤𝐬 𝐄𝐯𝐢𝐝𝐞𝐧𝐜𝐞 𝐁𝐢𝐥𝐥, 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.
𝘒𝘦𝘺 𝘩𝘪𝘨𝘩𝘭𝘪𝘨𝘩𝘵𝘴 𝘪𝘯𝘤𝘭𝘶𝘥𝘦:
(i) 𝐓𝐞𝐜𝐡𝐧𝐨𝐥𝐨𝐠𝐲-𝐧𝐞𝐮𝐭𝐫𝐚𝐥 𝐝𝐞𝐟𝐢𝐧𝐢𝐭𝐢𝐨𝐧 𝐨𝐟 “𝐛𝐚𝐧𝐤𝐞𝐫𝐬’ 𝐛𝐨𝐨𝐤𝐬”: Covers records maintained in physical, electronic, digital, virtual and cloud-based formats, including backup and disaster recovery systems.
(ii) 𝐑𝐞𝐜𝐨𝐠𝐧𝐢𝐭𝐢𝐨𝐧 𝐨𝐟 𝐝𝐢𝐠𝐢𝐭𝐚𝐥 𝐫𝐞𝐜𝐨𝐫𝐝𝐬: Electronic and digital records cannot be denied admissibility solely because of their format, provided the statutory conditions are satisfied.
(iii) 𝐒𝐭𝐚𝐧𝐝𝐚𝐫𝐝𝐢𝐬𝐞𝐝 𝐜𝐞𝐫𝐭𝐢𝐟𝐢𝐜𝐚𝐭𝐢𝐨𝐧 𝐟𝐫𝐚𝐦𝐞𝐰𝐨𝐫𝐤: Separate certificate formats have been prescribed for physical and electronic records, with authentication permitted through manual or digital signatures.
(iv) 𝐄𝐱𝐩𝐚𝐧𝐝𝐞𝐝 𝐝𝐞𝐟𝐢𝐧𝐢𝐭𝐢𝐨𝐧 𝐨𝐟 “𝐛𝐚𝐧𝐤”: The Central Government may notify additional financial sector entities to which the legislation will apply.
(v) 𝐃𝐞𝐟𝐢𝐧𝐢𝐭𝐢𝐨𝐧 𝐨𝐟 “𝐬𝐩𝐞𝐜𝐢𝐚𝐥 𝐜𝐚𝐮𝐬𝐞”: 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) 𝐂𝐲𝐛𝐞𝐫𝐬𝐞𝐜𝐮𝐫𝐢𝐭𝐲 𝐚𝐧𝐝 𝐢𝐧𝐭𝐞𝐠𝐫𝐢𝐭𝐲 𝐬𝐚𝐟𝐞𝐠𝐮𝐚𝐫𝐝𝐬: 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.