Bankers' Books Evidence Bill Introduced In Parliament To Recognise Digital Bank Records As Evidence

The Centre has proposed replacing the colonial-era Bankers' Books Evidence Act, 1891 with the Bankers' Books Evidence Bill, 2026, which expressly recognises electronic and digital bank records, including those stored on cloud infrastructure, as admissible evidence in legal proceedings.

The bill, introduced in the Lok Sabha on Tuesday by Union Finance Minister Nirmala Sitharaman, expands the definition of "bankers' books" to include records maintained in physical form as well as those stored electronically, digitally, at offsite or virtual locations, on cloud infrastructure, and at backup or disaster recovery sites.

It also prescribes the conditions under which such records may be admitted as evidence in legal proceedings.

According to the Statement of Objects and Reasons, the 1891 law was enacted when banking records were predominantly maintained in physical form. The government said technological advancements and the growth of digital banking made it necessary to modernise the legal framework governing bank records.

The bill provides that the admissibility of an electronic or digital bank record cannot be denied merely because it is in electronic form. However, such records must satisfy specified conditions before they can be admitted as evidence.

These conditions include ensuring the computer system is reliable, that only authorised persons handled data entry, that there was no tampering with the records, and that adequate cybersecurity safeguards were in place.

The bill also sets out separate certification requirements for physical and electronic records.

Certified copies may be authenticated manually or through digital or electronic signatures by a branch head, office head, or another authorised bank official, using the formats specified in the Schedules to the Bill.

Another key provision empowers the central government to extend the proposed law, by notification, to books maintained by other entities or classes of entities operating in the financial sector, subject to specified conditions. T

The bill also defines "special cause" for the first time, allowing a court to compel a bank officer to produce bankers' books or testify only where the authenticity of records is in doubt, record-keeping has been disrupted, or the bank has failed to comply with a court order.