The Lok Sabha on Wednesday passed the Bankers' Books Evidence Bill, 2026, aimed at modernising the legal framework governing the use of bank records as evidence in courts by recognising digital and virtual records. The legislation seeks to replace the British-era Bankers' Books Evidence Act, 1891, and bring banking evidence laws in line with the growing use of digital technology in the financial sector.

The Bill was passed through a voice vote amid continued disruptions by Opposition members in the House. After the Lok Sabha reconvened at 2 pm following an earlier adjournment, Opposition MPs continued sloganeering and refused to participate in a discussion on the legislation despite appeals from the Chair. Finance Minister Nirmala Sitharaman moved the Bill for consideration and passage during the disruption.

The proposed law, to be known as the Bankers' Books Evidence Act, 2026, aims to create a technology-neutral framework for recognising banking records in legal proceedings. According to the statement of objects and reasons, the increasing adoption of digital banking has resulted in bank records being created, stored and maintained through electronic and virtual systems instead of traditional physical documents.

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The Bill expands the definition of "bankers' books" to include records maintained in various formats, including physical, electronic, digital, virtual and cloud-based systems. It also provides for standardised certificate formats and allows authentication through manual, digital or electronic signatures. The legislation further recognises the admissibility of electronic bank records and permits their submission in either physical or electronic form.

The proposed law also gives the central government powers to extend its provisions to other entities or categories of entities operating in the financial sector, subject to specified conditions. It defines the term "special cause", allowing courts to order bank officials to produce records or appear as witnesses in specific legal proceedings where required.

The existing Bankers' Books Evidence Act, 1891, was introduced during the pre-independence period when banking records were primarily maintained in physical form. The new legislation aims to replace that framework with a system suited for modern banking practices, where digital transactions and electronic records have become central to financial operations.

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