Govt Introduces Bankers' Books Evidence Bill in Lok Sabha to Modernize 135-Year-Old Banking Law

Union Finance Minister Nirmala Sitharaman introduced the Bankers' Books Evidence Bill, 2026 in the Lok Sabha on Monday. The proposed legislation seeks to repeal and replace the colonial-era Bankers' Books Evidence Act of 1891, establishing a tech-friendly legal framework for handling financial records in court proceedings.

The primary objective of the new law is to expand the legal definition of "bankers' books" beyond traditional paper ledgers. The bill formally recognizes records stored in digital, electronic, virtual, or cloud-based formats as admissible evidence in court. It also permits authentication of these digital documents through manual, digital, or system-generated electronic signatures.

In addition to updating evidentiary standards, the bill introduces provisions to reduce routine court summons for bank staff. Under the new "special cause" clause, courts will require a written order showing specific necessity before forcing bank officers to appear in court or produce original records in cases where the bank is not a direct party. The Central Government can also extend the scope of this legislation to non-banking financial companies (NBFCs) and other institutions across the broader financial sector.