Bill introduced in Lok Sabha to replace 135-year-old banking law with digital-era framework

New Delhi [India], August 3 (ANI): The government on Monday introduced a bill to strengthen the existing provisions to meet the requirements of the present banking system through a legal framework that recognises digital banking records and aligns the law with contemporary banking practices.
According to the Statement of Objects and Reasons of the Bill, the existing law was enacted at a time when banking records were maintained only in physical form and no longer reflects the technological changes that have transformed the banking sector.
The Bankers' Books Evidence Bill, 2026, expands the definition of "bankers' books" to include records maintained in both physical and electronic forms. It also covers records stored in digital media, cloud locations and other electronic systems, recognising the shift towards technology-driven banking operations.
The Bill seeks 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.
The proposed law also seeks to standardise the certification process for producing bank records as evidence and formally recognises the admissibility of electronic banking records in legal proceedings, subject to the conditions laid down in the Bill.
It further empowers the Central Government to prescribe additional certification conditions and extend the law to entities carrying on the business of banking through notification.
According to the Bill, the objective is to ensure that the legal framework governing banking evidence keeps pace with evolving technology while maintaining the authenticity and reliability of records produced before courts and other authorities.
The Bankers' Books Evidence Act, 1891 was enacted 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.
The statement of objects and reasons said that with the advancement of technology and growth of digital banking, bank records are increasingly created, stored and maintained using contemporary technology. "It has, therefore, become necessary to modernise and strengthen the existing legal framework to meet the requirements of the present banking system," it said.
The bill seeks to provide a legal framework for the admissibility and certification of bank records in an increasingly digital banking environment. (ANI)