The Rajya Sabha on Monday passed the Bankers’ Books Evidence Bill, 2026, which seeks to replace the British-era Bankers’ Books Evidence Act, 1891 and update the legal framework for using banking records as evidence in courts. The Bill was passed by voice vote after a debate in the Upper House. 
The legislation had already been cleared by the Lok Sabha last week. It seeks to bring the law governing bankers’ books in line with the growing use of electronic and digital records across the banking sector. 
The existing 1891 law was framed when banking records were largely maintained on paper and legal proceedings relied heavily on certified physical copies of bank documents. The new Bill expands the framework to accommodate the way banks maintain and process records today, including electronic and virtual formats. 
Replying to the debate, Finance Minister Nirmala Sitharaman said the banking and financial sector had changed considerably over the past few decades with the growth of non-banking financial companies, payment aggregators, fintech companies and other financial service providers operating across the country. 
She said these entities play an important role in meeting the banking and financial requirements of people and should have access to a similar evidential framework whenever required. 
The Bill provides that banking records can be produced in physical or electronic form, depending on the circumstances. This is intended to remove the limitations of a legal framework that was designed around paper-based banking records. 
Sitharaman said the Bill also provides a clear legal framework for the use of banking records in court proceedings while seeking to protect customer privacy and confidentiality. 
Clause 4 of the Bill enables the Centre to extend the law to other regulated financial entities through a notification. This provision is intended to allow a more uniform evidential framework across the financial sector as newer forms of financial institutions and service providers continue to develop. 
The legislation therefore goes beyond conventional banks and creates scope for the framework to cover other regulated entities as the financial sector changes. 
During the debate, BJP member Arun Singh said the legislation was part of the government's broader banking reforms and noted that it was replacing a law dating back to 1891. 
He also referred to the consolidation of public sector banks, stating that their number had come down from 27 during the UPA period to 12 under the present government. According to Singh, the combined business of public sector banks had increased to INR 283 lakh crore from less than INR 100 lakh crore during the UPA era. 
Singh further said banks were now reporting profits, while lending to agriculture had increased. He cited INR 32 lakh crore in loans being provided to farmers and said non-performing assets had declined. 
On financial inclusion, he referred to the opening of 18 crore bank accounts and the introduction of RuPay cards. He also pointed to the expansion of UPI as an important development in digital payments and cited transactions worth INR 3.14 lakh crore. 
The Bill received support from AIADMK MP M Thambidurai, who said the definition of bankers’ books should cover physical as well as electronic, digital and virtual records. 
At the same time, he pointed to the risks associated with the increasing use of digital records, including cyber fraud, identity theft, unauthorised transactions and manipulation of electronic information. He urged the government to continue strengthening the cybersecurity framework around banking records. 
BJD MP Manas Ranjan Mangaraj also supported the Bill but stressed that data security and privacy should receive the highest priority. He said banking records contain sensitive personal and financial information and called for safeguards against misuse, unauthorised access and cyber threats. 
Mangaraj also said judges, investigative agencies, bank officials and enforcement personnel would need adequate training to handle electronic evidence. He pointed out that digital banking adoption is not uniform across the country and that people in rural and remote areas still rely on traditional banking systems. 
He said implementation of the new law should not create difficulties for smaller financial institutions or people who are yet to fully move to digital banking. 
The passage of the Bill took place amid an Opposition walkout in the Rajya Sabha. Opposition parties had attempted to raise other issues, including allegations concerning donations at the Ayodhya Ram temple and the alleged use of pellet guns against students and other protesters during a Parliament march. 
The Opposition has been seeking a response from Union Home Minister Amit Shah on the alleged use of pellet guns during the protest and has also demanded accountability over allegations of theft or misappropriation of donations at the Ram temple. 
Sitharaman criticised the walkout during her response and said the Bill was an area where members could contribute through suggestions and improvements. 
The minister also linked the replacement of the 1891 legislation to the broader need to move away from laws created for a colonial-era system. She noted that India's banking system had undergone rapid digitisation and that the instruments and methods used for banking had consequently changed. 
The Bankers’ Books Evidence Act, 1891 had been built around certified copies of bank records in legal proceedings. The new legislation seeks to bring the evidentiary rules governing such records closer to the present-day banking environment. 
Source PTI