The Ministry of Finance introduced the Bankers’ Books Evidence Bill, 2026, on July 28 to repeal and replace the Bankers’ Books Evidence Act, 1891. The bill expands the definition of bank records to include cloud-based data and allows electronic records to be admissible as evidence in courts, reflecting modern banking practices, according to medianama.com.
The current Act defines bank records as information stored in written form, microfilm, magnetic tape, or other mechanical or electronic data retrieval mechanisms. The proposed bill broadens this to include records stored in any data storage mechanism, including electronic or digital forms, onsite or offsite, virtual or cloud locations, and backup or disaster recovery sites. It also retains provisions allowing police officers of Superintendent rank to compel banks to produce records during criminal investigations without a court order.
This legislative update addresses the gap between the 1891 Act and contemporary banking technologies, especially the widespread use of cloud computing for data storage. By explicitly recognizing electronic and cloud-based records as valid evidence, the bill aligns legal frameworks with current banking operations. This move is significant as it modernizes evidence laws in the financial sector, potentially expediting investigations and legal proceedings involving bank records.
The bill’s Section 8(1) maintains that no bank officer shall be compelled to produce bank records in legal proceedings where the bank is not a party. The bill was introduced during the current Parliament session and awaits further legislative scrutiny, marking a key step in updating India’s financial legal infrastructure.