Archive · 3 Aug 2026
India Replaces 125-Year-Old Bank Records Law
India’s government has made a new law to help courts use bank records that are now kept on computers and in the cloud.
The old law was made in 1891 when banks used paper ledgers.
The new law says that banks can show electronic records in court, but only if the judge has a good reason.
It also lets the government apply the law to other financial companies.
The goal is to keep the law up to date with technology and make it easier for banks and courts to work together.
Finance Minister Nirmala Sitharaman introduced the Bankers’ Books Evidence Bill, 2026 in Lok Sabha to replace the 1891 Act.
The Bill expands the definition of “bankers’ books” to include physical, electronic, digital, virtual, and cloud-based records, creating a technology‑neutral framework.
It introduces a “special cause” provision, allowing courts to compel bank officers to produce records only when specific reasons exist, reducing routine summons.
Electronic bank records are now recognized as admissible evidence, with standardized certification formats and authentication via manual, digital, or electronic signatures.
The Central Government can extend the law to other financial entities under specified conditions, aiming to modernise evidence law for digital banking.
- Who
- Finance Minister Nirmala Sitharaman
- What
- Introduced a Bill to replace the 1891 Act on bank records evidence
- When
- August 2, 2026
- Where
- Lok Sabha, New Delhi
- Why
- To modernise evidence law for digital banking and reduce unnecessary legal burdens on banks
- Bill name
- Bankers’ Books Evidence Bill, 2026
- Replaces
- Bankers’ Books Evidence Act, 1891
- Introduced by
- Finance Minister Nirmala Sitharaman
- Date introduced
- August 2, 2026
- Key feature
- Special cause provision for court orders
- Scope
- All physical, electronic, digital, virtual, cloud-based records
