Govt introduces Bill to replace 1891 law, recognise digital bank records as court evidence

The government introduced the Bankers' Books Evidence Bill, 2026, in the Lok Sabha to replace the 1891 law, recognising digital and virtual banking records as admissible evidence, expanding the definition of bankers' books, and modernising the legal framework for technology-driven banking

New Delhi: The government on Monday introduced a Bill to replace British era legislation with the objective to include digital and virtual records as admissible evidence in the court of law in sync with digital dependence of the banking system.

The Bill was introduced by Finance Minister Nirmala Sitharaman in the Lok Sabha. The new law to be called the Bankers’ Books Evidence Act, 2026 is going to repeal or replace the Bankers’ Books Evidence Act, 1891.

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“With the advancement of technology and growth of digital banking, bank records are increasingly created, stored and maintained using contemporary technology (instead of physical record). It has, therefore, become necessary to modernise and strengthen the existing legal framework to meet the requirements of the present banking system,” the statement of objects and reasons of the Bill said. The bill proposes to expand the scope of the definition of ‘bankers’ books’ to include all forms of records maintained by banks, whether in physical, electronic, digital, virtual, cloud-based or in any other form, thereby providing a comprehensive, technology-neutral and future-ready legal framework, it said.

It proposes to provide for standardised certificate formats and authentication by manual or digital or electronic signature and to expressly recognise admissibility of electronic bank records and permit their production in either physical or electronic form. It is also going to empower the central government to extend applicability of the proposed legislation to any entity or class of entities operating in the financial sector, subject to certain conditions, it said.

The Bill seeks to define the expression ‘special cause’, for which a court may, by order in writing, compel an officer of the bank to produce any bankers’ books or to appear as witness to prove matters, transactions or accounts, in any legal proceeding where the bank is not a party.

The Bankers’ Books Evidence Act, 1891 was enacted during pre-independence era to facilitate the use of certified copies of bank records as evidence in legal proceedings without requiring production of the original records. The Act was enacted at a time when banking records were predominantly maintained in physical form.