India passes Bankers Books Evidence Bill 2026 to modernize banking laws

The Indian Parliament has passed the Bankers Books Evidence Bill 2026, a legislative overhaul designed to replace the 135-year-old Bankers’ Books Evidence Act of 1891. The new law aims to modernize the legal framework governing the admissibility of banking records by transitioning from a paper-based system to one that recognizes digital and electronic records.

Under the previous colonial-era law, banking evidence was centered on physical ledgers and cash-books. The 2026 Bill formally recognizes electronic and cloud-based records as ‘bankers books,’ allowing them to be used as evidence in legal proceedings. This change aligns the legal system with modern practices such as internet banking, mobile applications, and digital payments.

The Bill was cleared by the Lok Sabha on August 5 and the Rajya Sabha on August 10. While banks remain the primary focus, the legislation grants the central government the authority to extend these provisions to other financial entities, including NBFCs, insurance companies, and pension funds.