The Parliament has passed the Bankers’ Books Evidence Bill, 2026, aimed at recognising electronic and digital banking records as evidence in legal proceedings.
The Bill was passed by the Rajya Sabha paving the way for replacement of the colonial-era 1891 Act. The Lok Sabha had already passed the Bill.
The Bill aims to update the law governing the use of bankers’ books and records in courts in line with the present-day banking system.
A key feature of the Bill is the explicit recognition of electronic or digital records of bankers’ books as admissible, valid and legally enforceable evidence, subject to specified safeguards.
It retains most of the provisions of the existing Act, under which certified copies of bank records can be used as evidence in legal proceedings without requiring production of the original records.
An electronic or digital copy would be admissible if it is a true copy of the relevant entry or information and correctly represents or is appropriately derived from the original records.
The Bill further requires that no unauthorised alteration of data is detected and that there is no tampering with the system or any other event that could undermine the integrity and accuracy of the record.
What existing law says?
The current law says that a bank officer cannot ordinarily be compelled to produce a banker’s book in a proceeding to which the bank is not a party.
Further, nor can the officer be compelled to appear as a witness to prove matters, transactions or accounts recorded in such books, and such production or appearance can be ordered by a court or judge for a special cause.
Under the new 2026 Bill, the circumstances constituting such a special cause is defined.
These include cases where the accuracy or genuineness of an entry or information is doubtful, where an event indicates that the regular process of maintaining records has been interrupted, or where a bank fails to comply with a court order relating to inspection of its books.