Colonial-era banking evidence law to go: What the new Bill changes
One of the biggest changes is the expansion of what legally qualifies as "bankers" books". The term, under the proposed law, will no longer be limited to physical ledgers and account books.
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On Tuesday, August 4, Finance Minister Nirmala Sitharaman introduced a Bill to replace the 125-year-old Bankers' Books Evidence Act. The new Bill, named the Banker's Book Bill, updates the legal framework governing how bank records can be produced as evidence in courts. While the existing law was framed when banking records were largely maintained in physical form, the Bankers' Books Evidence Bill, 2026 seeks to recognise digital banking practices while changing the circumstances under which bank officials can be summoned.
With the advancement of technology and growth of digital banking, records are now "increasingly created, stored and maintained using contemporary technology." This makes it necessary "to modernise and strengthen the existing legal framework to meet the requirements of the present banking system", it added.
What does the bill change?
The Bill defines "special cause" to include situations where the accuracy or authenticity of an entry is in doubt, where an event suggests that the bank's normal record-keeping process has been disrupted, or where the bank has failed to comply with a legal order. The proposed law also requires courts to record reasons in writing before issuing such directions. It says no bank officer can be compelled to produce bankers' books or appear as a witness "unless by order of the court made for special cause, to be recorded in writing".
What changes for banking evidence?
The Bill retains the principle that certified copies of entries in bankers' books can be admitted as evidence. It, however, expands the framework to account for electronic record-keeping and prescribes detailed requirements for certifying both physical and digital records. It further allows the Union government to extend the law to other entities or classes of entities operating in the financial sector, subject to prescribed conditions.
The proposed Bill also gives the Union government the power to extend its provisions to other entities or classes of entities operating in the financial sector through notification, subject to prescribed conditions. If enacted, the Bill will replace a law that has governed banking evidence for more than 125 years.
The Statement of Objects and Reasons of the bill said the 1891 law was enacted “to facilitate the use of certified copies of bank records as evidence in legal proceedings without requiring production of the original records”.
With the advancement of technology and growth of digital banking, records are now "increasingly created, stored and maintained using contemporary technology." This makes it necessary "to modernise and strengthen the existing legal framework to meet the requirements of the present banking system", it added.
What does the bill change?
One of the biggest changes is the expansion of what legally qualifies as "bankers' books". The term, under the proposed law, will no longer be limited to physical ledgers and account books. It will cover records maintained in physical, electronic, digital, virtual and cloud-based formats, creating what the government calls a "comprehensive, technology-neutral and future-ready legal framework".
The Bill also changes how these records can be used as evidence in court. It expressly recognises electronic banking records as admissible evidence and allows certified records to be produced in either physical or electronic form.
BIG BREAKING 🚨 Modi Govt introduces the Bankers' Book Bill in the Lok Sabha to replace 125-year-old law on presenting bank records as evidence in courts.
— News Algebra (@NewsAlgebraIND) August 4, 2026
Electronic and virtual bank records to become admissible evidence. It also reduces the need for bank officials to appear… pic.twitter.com/f1Uc4NiuMb
It also introduces standardised certificate formats, permits authentication through manual, digital or electronic signatures, and lays down conditions for establishing the authenticity of electronic records. Another key change is the introduction of the concept of "special cause", which limits when courts can require bank officials to produce records or appear as witnesses in proceedings where the bank itself is not a party.
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The Bill defines "special cause" to include situations where the accuracy or authenticity of an entry is in doubt, where an event suggests that the bank's normal record-keeping process has been disrupted, or where the bank has failed to comply with a legal order. The proposed law also requires courts to record reasons in writing before issuing such directions. It says no bank officer can be compelled to produce bankers' books or appear as a witness "unless by order of the court made for special cause, to be recorded in writing".
What changes for banking evidence?
The Bill retains the principle that certified copies of entries in bankers' books can be admitted as evidence. It, however, expands the framework to account for electronic record-keeping and prescribes detailed requirements for certifying both physical and digital records. It further allows the Union government to extend the law to other entities or classes of entities operating in the financial sector, subject to prescribed conditions.
The proposed Bill also gives the Union government the power to extend its provisions to other entities or classes of entities operating in the financial sector through notification, subject to prescribed conditions. If enacted, the Bill will replace a law that has governed banking evidence for more than 125 years.