The Lok Sabha passed the Bankers' Books Evidence Bill, 2026, on August 5 via voice vote without any discussion.

As per the statement of objects and reasons, the colonial-era Bankers' Books Evidence Act, 1891, was enacted to facilitate the use of certified copies of bank records, including ledgers, cash-books, account books, etc., to be used as evidence in legal proceedings without the requirement to produce original records.

The Act was enacted at the time when banking records were predominantly maintained in physical form. However, with the advancement of technology, it was felt to modernise and strengthen the legal framework: "The Act was enacted at a time when banking records were predominantly maintained in physical form. 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."

The 2026 Bill intends to expand the scope of the definition of bankers' book to include digital records, to standardised certificate forms and authentication by digital signature, and to recognise the admissibility of electronic bank records.

The Bill also empowers the Central Government to extend the applicability of the proposed legislation to any entity or class of entities operating in the financial sector subject to certain conditions.

As per Section 3(2) of the proposed Bill, every copy of the bankers' book maintained in electronic or digital form shall be accompanied by a certificate. The certificate must contain the particulars of the computer system or device on which the copy was made.

It must also contain the date of issuance, signed or authenticated either manually or digitally by the branch head or the office head or any other authorised officer of the bank, and shall state the full name and official designation of the officer.

Section 7 contains the comprehensive conditions for admissibility of records maintained in electronic or digital form. As per Section 7(1)(a), the copy of record produced should be in a computer system or communication device during a period during which it has been regularly used to create and store information by a person having lawful control over the device.

The copy must be a true copy and the data entry must be done by an authorised person after taking adequate safeguards. There should be no unauthorised alteration or change in data observed during the relevant period. There must be no tampering with the system or any event affecting the integrity and accuracy of the system.

Further, the computer system or communication device must be operating properly in the said period and if not, then it shouldn't be such that it would have affected the accuracy of the records or the content.

Another important provision in the proposed Bill is Section 8, which is a safeguard against self-incrimination. It says that no officer of the bank shall be compelled in any legal proceedings to which the bank is not a party to produce any bankers' book.

However, Section 8(2) introduces "special causes" for which the Court, through an order, can compel the officer to produce a bankers' book.

The special causes include where accuracy or genuineness of the entry is doubtful, where any event suggests that regularity or ordinary nature of record keeping by the bank has been interrupted, or where the bank doesn't comply with the Court's order under Section 9.

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