Parliament passes bill to recognise digital banking records as evidenc

Parliament has passed the Bankers’ Books Evidence Bill, 2026, with the Rajya Sabha approving it on Monday. Lok Sabha has already passed the Bill. Union Finance Minister Nirmala Sitharaman moved the Bill, which aims to modernise the legal framework to meet the requirements of the present banking system. The Bill seeks to provide a law relating to evidence with respect to bankers’ books and to align it with contemporary digital banking practices. The Bill also has a provision that an electronic or digital record of a banker’s book will be admissible, valid, and legally enforceable as evidence. 
Replying to discussion on the bill, Finance Minister Sitharaman said that this bill is a very reformative step, which will help the country move forward at a faster pace. She highlighted that the Bankers’ Books Evidence Act was framed in 1891, when banking systems were entirely paper-based. Mrs Sitharaman said, today, India has demonstrated remarkable progress in digitising its economy. She said, banking and financial transactions are now largely driven by digital platforms, often accessible through a simple click on a mobile phone. The Minister said that in such a scenario, it is imperative that the country’s legal framework evolves to keep pace with these advancements. She noted that the existing 1891 Act relies heavily on certified copies of physical bank records as admissible evidence in legal proceedings. Mr Sitharaman said that the Bill establishes a technology-neutral legal framework for bankers’ records, which formally recognises electronic and digital banking records and ensures their admissibility in legal proceedings. It also standardises the certification process and allows authentication through manual, digital, and electronic signatures. 
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 production of the original records.It was enacted at a time when banking records were predominantly maintained in physical form.