Indian Finance Ministry Proposes New Bill to Replace Bankers’ Books Evidence Act
India's Finance Ministry has introduced a bill to repeal and replace the Bankers’ Books Evidence Act, 1891. The proposed legislation expands the definition of bank records to include cloud-based data and allows electronic records as legal evidence.
India's Ministry of Finance has proposed the Bankers’ Books Evidence Bill, 2026, aiming to repeal and replace the Bankers’ Books Evidence Act of 1891. The new bill seeks to modernize legal frameworks by incorporating digital and cloud-based data storage into the definition of bank records, aligning the law with contemporary banking practices.
The primary change in the proposed bill is the broadened definition of 'bank records'. The existing act defines records as information kept in written form or stored via microfilm, magnetic tape, or other electronic retrieval mechanisms. The new bill's definition includes records stored in any form, whether physical, electronic, digital, or cloud-based, encompassing onsite, offsite, virtual, or disaster recovery sites.
The legislation retains a provision allowing police officers of the rank of Superintendent of Police to compel banks to provide records during criminal investigations without necessarily requiring a court order first. An order from such a senior police officer will have the same legal effect as a court order, facilitating investigations, particularly in cybercrime cases.
Furthermore, the bill clarifies the admissibility of electronic and digital records as evidence in courts. Conditions for admissibility include secure storage, data integrity, and processing by authorized personnel with adequate safeguards during data transfer. Compliance with any future central government notifications regarding these conditions is also mandated, aiming to ensure the reliability and security of digital banking records.