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Rajya Sabha Passes Bill Making Digital Banking Records Admissible Evidence

Rajya Sabha Passes Bill Making Digital Banking Records Admissible Evidence
Rajya Sabha passes bill to recognize digital bank records as evidence · livemint.com

India's big law-making group, the Rajya Sabha, approved a new rule called The Bankers' Books Evidence Bill, 2026 on Monday.

Banks keep records on computers now instead of paper books.

This new law says those computer records can be used as proof in court.

Before, the rules were very old, from 1891, when India was ruled by Britain and banks used paper.

The new law updates those rules to match how banks work today.

It accepts records kept on computers, in the cloud, or on backup systems, as long as they are true copies that have not been changed without permission.

A leader named Nirmala Sitharaman, who manages money matters for India, explained the new law to the lawmakers.

She said it keeps customers' private information safe and can also be applied to other money companies later.

Some other leaders walked out of the room during the discussion because they wanted to talk about different problems.

Key facts

Bill
The Bankers' Books Evidence Bill, 2026
Passed by
Rajya Sabha, by voice vote
Lok Sabha passage
August 5 (introduced August 3)
Replaces
Bankers' Books Evidence Act, 1891
Finance Minister
Nirmala Sitharaman
Key provision
Clause 4 lets the central government extend the Act to other regulated financial entities
Record formats covered
Physical, electronic, digital, virtual and cloud-based
Constitutional basis
Entry 45 of the Union List, Seventh Schedule

Quotes

Finance Minister Nirmala Sitharaman

India's finance minister

“The Bankers’ Books Evidence Act, 1891, was designed for a paper-based banking system and no longer reflects today’s digital reality. With India’s rapid digitalization, banking and financial transactions have become increasingly phone-driven and electronic. The existing law requires paper-based certified records in legal proceedings, creating challenges for banks and raising privacy concerns. The Bankers’ Books Evidence Bill, 2026 aims to modernise the legal framework for banking in a digitally‑d”
livemint.com
“"The bill strengthens public confidence by providing a clear, secure and transparent legal framework for the use of banking records in legal proceedings while fully safeguarding the privacy and the confidentiality of customers," she added.”
livemint.com rediff.com

Sources

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