India’s Rajya Sabha has approved a new legislation modernising the 1891 Bankers’ Books Evidence Act, enabling electronic and virtual records to be used as legal evidence, reflecting changes in the country’s financial ecosystem.
India’s Upper House has approved legislation to modernise the rules on bank records, replacing a colonial-era law and making room for digital and virtual documents to be used as evidence in court. The Rajya Sabha passed the Bankers’ Books Evidence Bill, 2026, by voice vote on Monday, after the Lok Sabha had already cleared it on August 5.
Finance Minister Nirmala Sitharaman said the banking system has changed sharply over the past few decades, with non-banking financial companies, payment aggregators and fintech firms now playing a far larger role in serving customers across the country. She argued that this wider financial ecosystem needs a common evidential framework so that records can be accepted in legal proceedings whether they are kept on paper or electronically.
The bill is designed to update the Bankers’ Books Evidence Act, 1891, which has long allowed certified bank entries to be treated as prima facie evidence rather than conclusive proof. Legal commentary on the existing law says it was meant to spare courts and banks from unnecessary production of original records while still allowing inspection or certified copies where needed. Recent 2026 cases cited in legal databases show the old framework is still being used in disputes and criminal proceedings, underlining why lawmakers say an update is overdue.
According to the finance minister, clause 4 would also allow the central government to extend the law to other regulated financial entities by notification, creating a more uniform system across the financial sector. Sitharaman said the measure would strengthen public confidence by offering a clear and secure legal basis for using banking records in litigation while preserving customer privacy and confidentiality. The debate in the Rajya Sabha was overshadowed by an Opposition walkout over unrelated issues, including allegations around donations at the Ayodhya Ram temple and the use of pellet guns during the July 20 Sansad march.
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