Rajya Sabha passes Bankers' Books Evidence Bill, 2026 to modernise banking records law
The Rajya Sabha on Monday (August 10, 2026) passed the Bankers' Books Evidence Bill, 2026, a legislation that seeks to replace a British-era law and bring digital and virtual banking records within the ambit of admissible evidence in courts. The Bill, which was already passed by the Lok Sabha on August 5, was cleared by the Upper House through a voice vote.
The legislation aims to update the legal framework governing evidence from bankers' books, aligning it with the contemporary digital banking ecosystem. Currently, the Bankers' Books Evidence Act, 1891, governs the admissibility of banking records as evidence, but its provisions are largely outdated in the era of online banking, fintech services, and electronic records.
Moving the Bill for discussion, Finance Minister Nirmala Sitharaman said that the banking and financial sector in India has undergone significant transformation over the past few decades. The emergence of Non-Banking Financial Companies (NBFCs), payment aggregators, fintech companies, and other service providers with pan-India presence has changed the landscape. These entities, she noted, play an important role in fulfilling the banking and financial needs of the common people. Therefore, it is necessary to provide them a similar evidential framework whenever and wherever required.
The Finance Minister also informed the House that Clause 4 of the Bill empowers the Central Government to extend the Act to other regulated financial entities through notification. This provision, she said, would ensure a uniform evidential framework across the financial sector. The Bill permits banking records to be produced either in physical or electronic form, as the case may be, she added.
Emphasising the benefits of the Bill, Ms. Sitharaman said it strengthens public confidence by providing a clear, secure, and transparent legal framework for the use of banking records in legal proceedings. It also fully safeguards the privacy and confidentiality of customers.
Earlier in the day, as the Finance Minister moved the Bill for discussion, Opposition parties staged a walkout after the Chair disallowed their attempts to raise two issues: the alleged theft or misappropriation of donations at the Ayodhya Ram temple, and the alleged use of pellet guns against protesters during the July 20 Sansad march. The Opposition has been demanding that Union Home Minister Amit Shah come to Parliament and respond to the use of pellet guns against students and other protesters, besides seeking accountability over the Ram temple donation controversy.
The Bill, once enacted, will replace the 1891 law and is seen as a significant step towards modernising India's financial legal framework. Legal experts say the move will reduce reliance on physical records and streamline judicial processes involving banking transactions, which are increasingly conducted digitally. The government has defended the legislation as a necessary reform to keep pace with technological change without compromising on security or individual rights.
The passage of the Bill in both Houses completes the legislative process, and it will now be sent for presidential assent. Once signed into law, it will provide a comprehensive and contemporary framework for evidence related to banking records, benefiting the banking sector, courts, and customers alike.
