Parliament passes new bill replacing the 1891 law to make electronic and digital banking records admissible as evidence in courts
Key Highlights:
- Rajya Sabha passes Bankers’ Books Evidence Bill, 2026.
- Bill replaces the British-era 1891 legislation.
- Electronic and digital banking records can be used as court evidence.
- Framework also covers modern financial entities such as fintechs and payment aggregators.
- Government can extend the law to other regulated financial entities.
- Bill aims to strengthen transparency, security and privacy of banking records.
New Delhi, Aug 10: The Rajya Sabha on Monday passed the Bankers’ Books Evidence Bill, 2026, replacing the British-era legislation of 1891 and bringing India’s banking evidence framework in line with the country’s rapidly expanding digital financial ecosystem.
The Bill, which was already passed by the Lok Sabha on August 5, was cleared by the Upper House through a voice vote. It seeks to establish a modern legal framework for the use of bankers’ books and records as evidence in court proceedings.
Finance Minister Nirmala Sitharaman said the banking and financial sector has changed significantly over the past several decades with the emergence of NBFCs, payment aggregators, fintech companies and other financial service providers operating across the country.
The new legislation allows banking records to be produced in either physical or electronic form, recognising the growing dependence of the financial system on digital records and transactions.
Sitharaman said Clause 4 of the Bill empowers the Central Government to extend the legislation to other regulated financial entities through notification. This would help create a more uniform evidentiary framework across the financial sector.
The Finance Minister said the Bill would strengthen public confidence by establishing a clear, secure and transparent legal framework for using banking records in legal proceedings while safeguarding customer privacy and confidentiality.
Explaining the need to replace the existing law, Sitharaman noted that the Bankers’ Books Evidence Act originated in 1891, when banking systems were largely paper-based. India’s financial ecosystem has since undergone extensive digitisation, with electronic records now forming a core part of banking operations.
The Bill also addresses the growing role of fintech companies and other financial service providers. These entities increasingly perform functions that are closely connected with modern banking and financial services, making a broader evidentiary framework necessary.
During the debate, members also highlighted concerns surrounding cybersecurity, data protection and the handling of electronic evidence. AIADMK MP M Thambidurai welcomed the legislation while stressing the need to continuously strengthen cybersecurity measures against cyber fraud, identity theft, unauthorised transactions and manipulation of digital records.
BJD MP Manas Ranjan Mangaraj also supported the Bill and called for the highest priority to be given to data security and privacy. He emphasised the need for adequate training of judges, investigative agencies, bank officials and enforcement personnel to handle electronic evidence effectively.
The legislation comes as India continues to expand digital banking and payments, with platforms such as UPI becoming an important part of the country’s financial infrastructure.
The Bill is intended to replace the outdated paper-based framework with legislation suited to India’s digital banking environment, while maintaining safeguards around customer information and electronic financial records.
